There are so many advantages to owning a home in New Braunfels, TX and one of them is Income Tax Deductions! It’s that time again, you’ve compiled all of your statements from your employer, banks, investments… and your mortgage company… and all of your receipts. Now don’t forget these three common homeowner deductions:
1. Mortgage Interest– this is typically the biggest deduction for most homeowners. If you have a typical mortgage on your home up to 1 Million Dollars or $500,000 if married filing separately, every month a big chunk of your house payment goes to interest. That interest amount is deductible! Your mortgage company should send you a year-end statement with the total amount paid for the year totaled and ready for you to itemize on Schedule A.
2. Points or Loan Origination Fees– These are certain charges paid or treated as paid by a borrower to obtain a home mortgage. If you bought a new home in 2014 with a mortgage and paid points shown on your settlement statement as a percentage you may be allowed to deduct them for 2014. There are several criteria that have to be met to be able to take this deduction so make sure you contact your tax professional or read the IRS Publication 936 Tax Information for Homeowners for clarity.
3. Property Taxes– That right! Your local property taxes can be itemized also. This is typically the other big chunk of your monthly mortgage payment that goes into an escrow account and is paid once a year to the local taxing authorities. Your mortgage company will have the total amount paid on your annual statement ready to itemize.
So if you are renting, its time to start thinking about buying and taking advantage of these great tax advantages for next year! Call or text (512) 922-5282 or email Laura at firstname.lastname@example.org start your New Braunfels home search today!
*Please note: I am a Real Estate Broker providing general information learned from the IRS Tax Information for Homeowners, please contact a qualified Tax Professional for advice or question before filing your taxes.
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