Tax season is here! If you own a home you should maximize your tax breaks.
Here are some home-owning related tax breaks to file this year!
Interest on home-improvement loan
If you own a second home, the mortgage interest paid may be deductible as long as you spend at least 14 days or 10% of the fair rental days (whichever is longer) in the home.
Property taxes are almost always tax-deductible. Did you know, Military service members can also write off real estate taxes and home mortgage interest even if they receive a housing allowance?
Residential energy-efficient tax credit
If you made efforts to make your home more energy efficient by installing equipment like storm doors, energy-efficient windows, asphalt or metal roofs, insulation, air-conditioning and heating systems, you may be eligible for a tax credit of up to $500.
Renewable-energy tax credit
If you’ve installed “green” equipment that uses renewable sources of energy to help power your home, you may be eligible for the Renewable Energy Efficiency Property Credit. You are eligible for this tax credit up to about 30% of the cost of the equipment, including installation costs!
Home expenses and improvement
Although you can’t write off the cost of home improvement, such as the materials and the labor. You can write off the interest if you took out a home loan to pay the contractor and to purchase the materials.