Anyone with a TV can tell it’s the start of Tax Season. You’ll start to see tax companies advertise their services with celebrities and promises of putting money in your pocket by using their services. What you really need to know though, is how being a homeowner can give you a tax break in 2017.
Your mortgage interest is tax-deductible. You can claim it against your taxes and save thousands. First-time homeowners typically pay $10,000 on a 30-Year mortgage that first year, and homeowners deduct 100 Billion dollars off of their taxes every year due to this program!
If you have an FHA loan, you’re paying PMI, or Private Mortgage Insurance. This is designed to protect the lender if you default on the loan. If you have a large balance on your loan, (and most new homeowners do) you can deduct that payment from your tax bill as well.
If you had a storm or flood or fire or any natural disaster, you can receive some recompense from the IRS for your losses. This doesn’t mean that you can claim the money that the IRS paid for your damage, but anything out-of-pocket that you lose is fair game. You can claim these losses and use Form 4694 to figure out what you can recoup.
Working from home
Self-employed folks can deduct the cost of their home office from their taxes. They need to meet the requirements of the IRS as a room that sees “regular and exclusive use” as an office, so don’t just claim your spare bedroom. Whatever percentage of your home the office represents, you can claim on your taxes. Deduct that percent from your utilities, insurance, property taxes, and general repair bills, for example.
If you’re ready to save on your taxes by becoming a homeowner, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, or Indianapolis at (317) 550-1515 or Nashville at )615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?