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What Homeowners Should Keep in Mind this Tax Season

Every year, Americans approach tax season and have to make a decision when to file. By requesting an automatic extension, you would not have to actually file your return until October 15, but you will still have to pay the tax you owe in April.

 

By the end of January you should have received statements from your lender. Legally, any lender that receives $600 or more in mortgage interest must send the borrower a Form 1098. This form must also include any mortgage insurance premiums that were paid within the past year.

 

The largest savings that a homeowner can hope for is the mortgage interest deduction. This can be claimed on both primary and secondary homes so long as that home is less than a million dollars and your tax return is itemized.

 

Another tax write-off is making home improvements. By adding another bedroom, roof, or other general improvements that increase the value of your home can help reduce your tax liability.

 

One very helpful publication provided by the IRS can be found here. If you have any questions on this topic or real estate in general, contact Synergy Properties today.

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