Was 2016 a big year for you where you finally became a homeowner? Well, guess what, you may qualify for some excellent tax benefits. This year, before you file your taxes, here are some deductions to be aware of:
- Home-improvement loan. The interest on a home-improvement loan is deductible, according to the IRS, up to $100,000. However, any part of the home loan which is above 100% of the loan-to value (more than the value of the property) is not deductible.
- Property tax. In most cases, property taxes are tax-deductible with the exception of your attorney, appraisal fees, title insurance, credit card reports, and other items on a settlement document. If you have any questions, consult your tax account.
- Energy-efficient tax credit. If you made energy efficient improvements to your home, you may qualify for a tax deduction. Talk with your tax account to determine is this credit is still available.
- Renewable-energy tax credit. Another tax credit to be aware of is the Renewable Energy Efficiency Property Credit. Under this tax credit, you may be eligible for a tax credit up to 30% (per cost of equipment, installation, and so on).
If you are ready to make the move towards homeownership and want to see what tax benefits you may quality for, give us a call today. We are here to help you find your dream home and start your journey as a homeowner.