As April comes to an end, many of us find ourselves facing tax season, a time when financial matters come into sharp focus. If you’re a homeowner, you might wonder if you’re maximizing all the potential tax benefits that come with owning a home. While we’re not attorneys or licensed CPAs and cannot offer specific financial advice, we’re here to equip you with the knowledge to ask the right questions and make informed decisions.
Mortgage Interest Deduction:
If you have a mortgage on your property, the interest you pay can often be deducted from your yearly taxable income. This deduction can result in significant savings, particularly if you’ve recently purchased a home within the last couple of years.
Mortgage Insurance Deduction:
For homeowners who made a down payment of less than 20%, mortgage insurance may be required. Fortunately, mortgage insurance premiums can also be deducted from your yearly taxable income, providing additional savings.
Real Estate Tax Deduction:
Homeowners may be eligible to deduct up to $10,000 in property taxes paid for the tax year 2023. If you’re married but filing separately, this deduction may be up to $5,000.
Homestead Exemption:
By filing for a homestead exemption, homeowners can lower the taxable value of their property, subsequently reducing property taxes. This exemption is particularly beneficial for those who have lived in their property and may offer long-term savings. Once filed, the homestead exemption typically remains in place without the need for renewal.
Additional Exemptions:
Various additional exemptions exist for specific groups, such as disabled veterans, individuals aged 65 or older, or those with disabilities. Exploring these exemptions with your financial advisor can further optimize your tax benefits.
At Homes with Hall Realty, we recognize the value of your hard-earned money. Our mission is to help individuals and families navigate the real estate market, ensuring they reap the full rewards of home ownership, including its tax benefits. Whether you’re looking to buy or sell a home, our dedicated team is here to assist you every step of the way. Reach out to us today to explore your options and start leveraging the advantages of home ownership.