| Homeowners have to spend a lot on many things | | | | medical grounds and is related to some health related |
| towards their home. Here are some of them: | | | | issues, the expenditure is deductible in such cases. This |
| 1 Deductions for local taxes | | | | can be restructuring made for the convenience of a |
| Annual property tax is paid by any homeowners on | | | | disabled or ill person residing in the home. Some |
| the basis of value their home has. But many of us | | | | common examples are air condition units or handicap |
| don't know that these local property taxes are allowed | | | | ramps and so on. |
| as legal deductions by the federal government and | | | | 6 Green Credit |
| hence are totally tax deductible. | | | | If you are a responsible citizen taking some extra |
| 2 Doing business from home | | | | efforts to save our planet by doing things such as |
| If you own a business which you are maintaining from | | | | buying appliances which are energy-efficient and used |
| your residence and thus it is your home office, you can | | | | for home. You can also install solar power panels you |
| deduct the home office expenses. But this process of | | | | can also earn tax deduction credits. So with saving our |
| home office deduction is better handled if you prefer | | | | planet you can also make arrangements for savings |
| to consider consultation from tax CPA. This way you | | | | on your taxes! |
| can appropriately deduct the expenses incurred for | | | | 7 Points for paid refinance loan |
| maintaining your home office. | | | | Even though Refinancing is a headache, still it has its |
| 3 Loss due to casualty | | | | own benefits. You are eligible for deduction points if |
| Casualty losses are the expenses you suffered due | | | | you have refinanced recently. But then you cannot |
| to any natural calamity as storm, flooding or a mishap | | | | deduct the total points at the same time, you need to |
| such as fire which is not happened due to your | | | | divide it evenly over the loan period. If you had a loan |
| carelessness. This amount is also deductible but is | | | | for 20 years, then as you have 40 total points, you |
| bound to many rules and regulations. To tackle with | | | | can deduct 2 points per year. |
| this you should consult your tax CPA. | | | | 8 Selling costs |
| 4 Interest paid on mortgage | | | | As we know we have deductions for owning and |
| The IRS has allowed deduction for the interest that | | | | maintaining our home, now we have deductions also |
| you are paying for your mortgage for a limit of $1.1 | | | | for selling our home. You have to declare these |
| million. This stands as the largest available tax break in | | | | deductions after including all the expenses you paid for |
| the tax code that a homemaker can have for the | | | | selling your home. These can be the fees you paid for |
| mortgage interest deduction. | | | | real estate agency or legal fees. If you are doing some |
| 5 Enhancements due to health related issues | | | | improvements in your home to add to its gain value |
| If any improvements or changes in home structure as | | | | such as painting or landscaping, these are also |
| the home renovations or home remodeling is done on | | | | deductible. |