When you have achieved homeownership, it is the ultimate goal. This is what is known as living the American dream. For many people, that might be a difficult goal to achieve. It has never been more difficult in the history of the country to own your own home. However, when you do finally get there, there are a host of tax benefits that can help curb the cost of homeownership. Mark Dicus & Company is here to talk about some of the ways that buying a home can impact your taxes.
Ways Homeownership Impacts Your Taxes
Here are some of the main ways that you can take advantage of homeownership when it comes time to do your taxes.
– Mortgage Interest Deduction: There is a great deal of money that homeowners pay toward mortgage interest every single month. On the bright side, you can deduct this interest when it comes time to do your taxes. I can help tremendously to lower your tax liability.
– Property Tax Deduction: Not only can you deduct the interest on your mortgage, but you can also deduct your property taxes up to $10,000. This is another way that homeowners can find some financial relief to help with the burden that can be wrapped up in owning a home.
– Home Office Deduction: If you have a small business and do most of your business out of a home office, you will be able to deduct part of your mortgage from your taxes. However, the office must be used strictly for your business and not meet other needs for your household.
– Home Sale Exclusion: If you have sold your primary home, you can take advantage of the incentives that the IRS offers that helps encourage sellers to make the deal. It can help you save on capital gains taxes by up to $250,000 when your home qualifies.
The Complexity of Owning a Home
Owning a home is a complex situation. While it can be costly, there are some ways that you can benefit on your taxes to help curb that cost. However, it might not completely negate the increase in your monthly bills. While renters don’t have the tax deductions that homeowners do, they also don’t need to think about things like home repairs either. Sometimes, you just have to make sure that you’re waiting for the right timing, the right home and the right price. If you aren’t sure how to make plans for home ownership and taking advantage of the tax breaks that come with home ownership, it might be time to turn to some tax consultants.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
At Mark Dicus & Company, we can help ensure you’re taking advantage of all the tax incentives that are available to you so that you have as much financial wiggle room as possible. We want to help you save money. Call us today!