TAX TIPS FOR TOMAHAWK AREA HOMEOWNERS!


Owning a home has many advantages come tax time, and you need to ensure you are taking as many as will apply to your personal situation.

Mortgage Interest- This is one of the best tax breaks for homeowners. Say you have a $250,000 30- year mortgage on your home....this could result in upwards of $10,000 in interest tax relief.  If you own Vacation Property you can also use the interest paid on that as well.

Real Estate Taxes- Deductions paid for local real estate taxes can be substantial. This can result in an even greater tax break than the Mortgage Interest deduction.

Mortgage Insurance- Homeowners who do not have a 20% equity in their home are required to have Private Mortgage Insurance, which results in 0.5-1% of their total loan amount. Deducting these payments can add up.

Mortgage Points- If you recently purchased a home in the tax year, you paid 1% of the total mortgage in points.  You are eligible to deduct your Mortgage Points for your tax year purchased.

Home Office- Work from home and have an IRS approved office? You're in for even greater tax savings in the form of several different deductions; example- square footage of your office. If your office square footage is 5% of your home, you can deduct 5% of your properties utilities, homeowners insurance, taxes and more.

Always consult with your local CPA for the exact Tax Deduction Benefits you are entitled to.

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