If you’re a homeowner, it can pay off at tax time. We want homeowners in the Austin, TX area to take advantage of your tax deductions. Make sure you are taking all the home tax deductions you’re entitled to receive. Here are some homeowner related tax strategies and deductions that may help lower your year’s tax bill.
- One of the best deductions is your mortgage interest deduction. Even if your loan was for something other than your home, like college tuition, as long as your home secures the loan, you could deduct the mortgage interest.
- Any property taxes paid are deductible.
- Deduct the cost of PMI or FHA mortgage insurance premiums.
- Use the Nonbusiness Energy Tax Credit for upgrading your home to be more energy-efficient. Sample upgrades are a Biomass stove, heating and air conditioning systems, adding insulation, roofing of metal and asphalt, non-solar water heaters, adding energy efficient windows and doors.
- Vacation home tax deductions can be tricky, but you may be able to deduct the mortgage interest and real estate taxes.
- Prepaid interest, or points, paid for the initial mortgage are 100% deductible. If you refinanced, you might be eligible for a portion of the tax deduction.
Not all of the tax deductions are straightforward and it may pay to work with a professional to make sure you properly claim all deductions you’re entitled to each year. Keep records of expenses over the year to help you claim all deductions you’re eligible to claim.
The Policy Source
The Policy Source provides homeowner’s insurance coverage for the Austin, TX area. Like annual tax deductions, your home insurance may cover things you never thought about, and we want you to be informed. Work with one of our agents to use your home policy to its full benefit.