Frequent Tax Deductions for Home Owners

Closing costs deductions – The discount points and origination fees paid to your mortgage lender at closing are usually deductible.

Mortgage interest deduction – If the home is your personal residence, all of the mortgage interest you owe and paid before the end of the year is deductible on your taxes. Your mortgage lender will send you a form in January indicating the amount of interest you paid in during the year. Many lenders also make this information available online.

Property tax deductions – For your personal residence, you should be able to deduct 100% of the property taxes you’ve paid to your state and local taxing authority.

As well, there are a range of home improvements write offs (e.g., home’s energy efficiency, etc.), state, and local tax credits for buying a foreclosed home, in addition to other tax returns that you might qualify for.

Always check with your tax preparer to ensure you are receiving all your qualified deductions for your home!

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