Now that the 2015 tax season is upon us, you are either delighted by the various deductions you qualify for, or wishing you had more. If you are a homeowner, we have some good news for you, there are quite a few homeowner tax advantages. Here are three examples:
Mortgage Interest
All home mortgages taken out to buy, build or improve a main or second home can be a deduction, but some conditions may apply. The more common conditions affecting mortgage deductions are:
- Your mortgage must be a secured debt. That is, the home is put up as collateral to protect the lender, so if you cannot pay the debt, your home would serve as payment to satisfy the debt.
- Your mortgage must be secured by a qualified home. This includes a house, condominium unit, mobile home, cooperative unit, house trailer, recreational vehicle or boat, that has sleeping, cooking, and toilet facilities.
- If you rent out your home or second home, there are minimum requirements for your usage of the property. You must use the home more than 14 days in the year or 10% of the number of days you rent it for the mortgage interest to qualify as a deduction.
Learn more about home mortgage interest tax deductions on the Internal Revenue Service website.
Points
Points paid to get a mortgage for your primary residence are usually deductible in the year paid, even if you persuade the seller to pay the points for you. They are not deductible if paid as part of a mortgage refinance on your principal home or second home; in those cases, you may deduct the points over the life of the loan.
Property Taxes
The property taxes paid to the county are deductible from your federal tax return. If you qualify, you can reduce your property taxes on the front-end if you homestead your property. Learn more about filing for homestead and other exemptions in Broward County or Palm Beach County by visiting the respective Property Appraiser website.
For many Fort Lauderdale homeowners, taxes are relatively simple and uncomplicated. That is, until you start taking individual deductions. For itemized deductions, you’ll need to move to more complicated, but still very reasonable, forms. The difference in effort is well worth the hundreds or thousands you will save. Of course, for advice on homeowner tax advantages, you should consult a tax professional.
