If there is one thing that unites Americans, it’s the idea that nobody wants to pay more taxes than they have to. Not only does homeownership help build wealth, owning a home is also the source of one the biggest tax deductions available to everyday Americans. Here are some things to keep in mind when you are filing your 2015 tax return, homeowners!
1. Mortgage Interest – Particularly in the early years of your mortgage when the percentage of your payment is largely interest, this can equal big savings.
2. Property taxes – often the property taxes you pay are deductible.
3. Closing costs – if you closed on a home purchase or refinance in 2015, there may be deductible closing costs such as points and up front mortgage insurance premiums. You can find these costs on your closing settlement statement.
4. Renewable Energy Efficiency Property Credit – if you’ve installed systems that run on solar or wind energy, you are eligible for a potential tax credit of up to 30% of the cost of the equipment and installation. This credit is in place until the end of 2016, so it’s not too late to take advantage of the program.
5. Energy Efficiency Tax Credit – There is a $500 tax credit available if you’ve made improvements to your home’s energy efficiency. This could be for window replacement, insulation, storm doors, and heating systems.
If you’re a Sweet Living client you will have received your 2015 closing statement in the mail. If not, please email email@example.com. If you have any questions about your personal tax situation, please contact your tax preparer.