Homeowner Tax Breaks You Don't Want To Miss

ARLINGTON, Texas - Jan. 2, 2016 - PRLog -- As we welcome in the new year, we typically don’t have such warm feelings welcoming in the new tax season. Don’t fret – you may have reasons to celebrate the IRS when filing your taxes in 2016! When preparing your taxes this year, don’t forget these tax breaks for homeowners that could save you a bundle!

• First-time home buyer: Depending on whether you meet the conditions established by HUD, you may be eligible for a tax credit for purchasing your first home.

• Mortgage interest: Tax deductions can be applied to your primary and a second residence (few restrictions apply). By the end of January, you should receive a statement from your lender with the amount you paid over the year.
• Energy-efficiency tax credit: You may be eligible for a credit if you made your home more energy efficient by installing items such as storm doors, energy efficient windows, insulation, efficient air-conditioning and heating systems, etc. This credit will only be in effect until December 31, 2016.

• Renewable Energy Efficiency Property Credit: You can claim equipment or installations that use renewable sources of energy to power your home, such as wind and solar.  This tax credit saves you up to 30% of the equipment cost, including installation, as long as it is placed in service by December 2016.
• Property tax: You may be eligible to not only claim the property taxes you paid as a deduction, but also any taxes you reimbursed the seller for (taxes the seller already paid before you took over ownership- you will find this amount on the settlement sheet).
• Home expenses and improvement: If you made required home improvements or installments for medial care, you may receive a tax deduction.

• Home equity loan or home equity line of credit: You can deduct the interest on up to $100,000 borrowed on a home equity loan or line of credit, regardless of the reason.
• Points on home mortgage and financing: Points that you paid when you purchased your home are eligible.
• Private mortgage insurance (PMI): Unless renewed by Congress,
2014 is the last year you can claim deductions for premiums paid for PMIs.

Owning a home can certainly have its advantages, especially during tax season! Hopefully by utilizing some of these tax breaks this year, you will walk away from the typically dreaded tax season with a smile.

For all your real estate needs, contact expert DFW Realtor, Gail Burdine with Keller Williams Realty, today!

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