Tax Day is only weeks away and if you haven’t filed your taxes yet you’re in luck because there are tax deductions you can take advantage of which will lower your taxes.
Mortgage Interest Deduction
If you purchased your home before December 15th of last year, you can still deduct all of the interest on your mortgage loan up to $1Million dollars.
The mortgage interest deduction will still be available to anyone who buys a home this year but the deductible is going to be capped at just $750,000.
Property Tax Deductions
Although some people have said that property tax deductions have gone, the reality is that you can still deduct your property taxes but they are capped at $10,000 for the year.
Home Office Deduction
Do you have a dedicated office space in your home for your business? If so, you can take a home office deduction. A word of warning though, this deduction only applies to small businesses and not W2 employees.
Home Modification Deductions
Did you make improvements to your home for health purposes? For example: did you widen doorways in your home, add a wheelchair ramp, support bars or a stairlift to accommodate yourself or someone in your home who uses a wheelchair? If the answer is yes, you may be able to deduct those modifications but you must also be able to provide a letter from your doctor which will prove that those deductions are necessary.
HELOC Interest Deductions
Last of all, but most important. In the past, you may have been able to deduct all the interest on your mortgage loans. That’s changed with the recent Trump tax plan. Now you can only deduct interest on your HELOC if a “substantial” modification to your home was made.
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