They say the only things you can count on in live are death and taxes. But what about tax breaks? Every year the IRS encourages people to buy homes and perpetuate the economy by offering millions of dollars in tax breaks. So how can being a homeowner actually save you money in 2017? Let’s take a look at just some of the tax breaks offered to homeowners!
Points for Home Mortgage
Did you know that the interest on your mortgage is actually deductible? Each dollar you spend on your interest is actually translated into a point value. According to a principal tax research analyst at H&R Block, you will receive points for each dollar you spend on your interest. One point is actually equal to one percent of the principal loan amount. This deduction could be paid out over the length of your mortgage payment or paid all at once.
Anyone who has ever paid property taxes knows it is a lot of money. But not everyone knows that most property taxes are actually tax-deductible. Although not everything on your tax bill may be refunded, some of the main tax amounts might be.
Residential Energy-Efficient and Renewable-Energy Tax Credit
Whether your new home is already energy-efficient or you have taken the steps as a homeowner to make it efficient, this is your chance to recoup some of your efforts. Things like adding storm doors, new energy-efficient windows, asphalt or metal roofing, and HVAC system could give you a credit of up to $500. This credit runs year to year but has been extended through December 31, 2016, so be sure to take advantage of it this year. If your home uses renewable energy like solar or wind power, you could be in eligible for a tax break of up to 30 percent of your equipment and installation costs.
There are many other tax breaks that could be earning for your home. For more information on buying a home and earning some of these homeowner tax breaks, call Simply Referable today!
Call Simply Referable!
There are any number of obscure and strange real estate laws in Maryland. The small team of realtors at Simply Referable will be happy to help guide you through the thicket. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.