Yes, there are many benefits which come from owning an Austin Texas home like the freedom of being able to make decisions about your home without having to call a landlord but what about the tax benefits of owning a home, do you actually know them all?
In this article, we will provide you with the tax benefits that from owning a home just so you will be aware of the many tax advantages that are available to you once you decide to invest in Austin Texas Real Estate.
Tax Advantage #1 – Write Off Your Mortgage Interest
The first tax advantage that comes with owning an Austin Texas home is that you get to write off your mortgage interest over the course of one year.
Tax Advantage #2 – Write Off Your Property Taxes
Another huge tax advantage that’s available to you is your ability to write off your property taxes.
Generally, your property taxes are deductible on your tax return, says Brian Ashcraft, director of compliance at Liberty Tax Service. And that could be hefty saving. According to the U.S. Census Bureau, the average household property tax is $2,127. If you have a mortgage, your taxes are built into your monthly payment.
You can also pay property taxes early and write off the entire expense if you’re staring down a large tax bill for any given year. Just note that you must claim the deduction in the year you wrote the check. For example, if you paid your 2017 property tax in 2016, claim that tax benefit on your 2016 return. Here’s more info on how to calculate property taxes.
Tax Advantage #3 – Write Off Private Mortgage Insurance
Let’s say that you’re going to put less than 20% when buying a home if this is the case you be faced with paying private mortgage insurance which can cost up to $1,500 per year but this also means that you can cut your taxable income by $1,500 as well.
Tax Advantage #4 – Write Off Your Energy Efficient Upgrades
Are you planning on making energy efficient upgrades to your Austin Texas Home after you purchase it? The good news is that once you make energy efficient upgrades to your home you can also use the Renewable Energy Property Credit and claim up to 30% off the cost of the equipment that you purchase like wind turbines, solar panels, HVAC or energy efficient windows.
Search for An Austin Texas Home
To get started with searching for an Austin Texas Home contact the Kent Redding Group today by calling us at (512) 306-1001 or click here to connect with us online.