The Good News of Tax Season: Deductions!

June 16, 2017

Many of us are aware that home ownership allows for some substantial tax deductions. The top ones that come to mind are mortgage interest and property taxes, but there are additional deductions that may brighten your tax-season horizon. If you purchased a home within the last year, you can claim the origination fees, even if they were paid by the seller. Likewise, discount points on a refinanced loan are tax-deductible. Qualified home buyers can deduct for private mortgage insurance, and folks with home equity loans can claim the interest as a deduction. If you sell your house you could receive a hefty capital gains exclusion. There’s more! Did you know you can deduct expenses for home improvements to meet medical needs, or a dedicated home office, or “green” home upgrades? Here’s a good one: if you rent out a portion of your home–perhaps for a Rose Bowl game or the Special Olympics–the income is tax-free. (Ever thought of charging the in-laws when they visit?) Finally, owners of foreclosed or short-sale homes can receive a mortgage-debt forgiveness. Talk to your tax specialist to find out if you qualify for these lesser-known tax deductions. They can really add up. My monthly Home Buyer Workshop covers the financial benefits of home ownership, in addition to the mortgage approval process and how to submit a winning offer in today’s competitive market. To receive a Home Buyer Workshop flyer with details, email me at Sharon@SharonHales.com or visit SharonHales.com.

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