Becoming a homeowner is one of the defining moments in someone’s life. Luckily homeownership also comes with some great tax perks. Below are items to claim that will help towards tax deductions and refunds with a purchase of a new home.
Things to claim:
- Your property taxes. Don’t forget to include any taxes you may have reimbursed the seller for. These are taxes the seller had already paid before you took ownership. You won't get a 1098 report listing these taxes. Instead, that amount will be shown on the settlement sheet.
- The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
- The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
- Points that you paid when you purchased the house (or those that you convinced the seller to pay for you).
- The premiums paid for Mortgage Insurance Premiums, but only for policies issued after 2006. Unless Congress renews this deduction, 2016 is the last year it can be claimed. (The right to this deduction disappears as your Adjusted Gross Income rises from $100,000 to $109,000 (or
$50,000 to $54,500 for those who use married filing separately status.)
- Home improvements required for medical care.
- Moving Expenses
- Home Office