It’s tax time again. We have a bit of an extension this year pushing the tax deadline from April 15th to May 17th, so if you haven’t filed yet, make sure to consider these money saving tips and of course, consult with your tax advisor on your specific financial situation.
Deduct Mortgage Interest
If this is your first year filing taxes as a homeowner, you will find another perk of owning a home is the ability to deduct mortgage interest. And typically, if you’re a new homeowner, a lot of your monthly payments are going toward the interest of the loan as opposed to the loan itself, which can create a sizable tax return.
Property Taxes Are Deductible
On your federal tax return, you can claim any state and local property taxes you paid. Keep in mind, you can only claim property taxes from the month you purchased the home. For example, if you bought your home last December, you can only deduct one month of property taxes. Also, the total amount you can deduct is $10,000, regardless of the total amount you pay.
Your Home Office May Be Deductible
If you are self employed and operate your business out of your home office, you might be able to write off certain expenses to maintain that space. Be sure to consult with your tax advisor to find out if you qualify for this deduction.
Casualty Losses
If your property was damaged by a natural disaster, burglary or vandalism, the IRS will let you account for the loss. As long as you pay at least 10 percent of your income out-of-pocket to cover damages, you can write-off the remainder.
Mortgage Insurance Premium Deduction
Private mortgage insurance (PMI) premiums are deductible as part of the mortgage interest deduction through tax year 2020.
This deduction had expired at the end of 2017, but has been extended through the 2020 tax year. You can read more about this deduction at IRS.gov.
About Michigan Mortgage Lender, Julie Krumholz
Julie Krumholz is a Michigan Mortgage lender at Superior National Bank. With over 35 years in the mortgage industry, Julie’s goal is to provide the best possible mortgage experience and the most competitive rates. Julie has vast experience in FHA loans, VA Loans, USDA loans, portfolio loans, MSHDA loans and more.
