Tax time will be here before you know it. When filing your taxes, don’t forget about any home-related deductions you can take. Talk to a tax expert if you have questions.
- Mortgage Interest Deduction
To obtain the mortgage interest deduction, your mortgage must be secured by your home. Interest you pay on a mortgage of up to $1 million, or $500,000 if you’re married filing separately, is deductible when you use the loan to buy, build, or improve your home in any way.
- Prepaid Interest Deduction
Any interest you paid during the time of signing your mortgage is almost 100% deductible in the year you paid it, along with any other mortgage interest paid. If you refinance for a 10-year mortgage, paying $6,000 in interest, you can then deduct $600 per year.
- Property Tax Deduction
When you pay your real estate property taxes, you can usually deduct these from your tax return. If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed on your home.