The tax deadline is rapidly approaching! Do not miss out on money saving tax benefits of home ownership. The 2017 Franklin TN home ownership tax tips in this blog may help with your taxes this year.
Find the Correct Amounts Paid for Property Taxes
Property taxes are a tax deductible property expense. It is important to use the accurate tax amount based on invoices received from your local tax collector and/or the statement from your closing. There are scenarios where a homeowner may contribute tax money into escrow every month, and that monthly amount would not be the correct figure to use.
Retain Receipts for Home Repairs
Keep receipts for all home repair costs. Some improvements, such as those to improve energy efficiency (windows, doors, heating and air conditioning systems) may qualify for energy improvement tax credits. Adding renewable energy components such as solar panels qualify for yet another special tax credit. Even if your repairs do not qualify, they may be used years later when figuring out how much, if any, taxes may be owed on your home sale.
Find a Copy of Paperwork from Your Closing
If you bought a property or refinanced a mortgage this past year, you should have received a form that outlines the expenses. Tax deductible closing expenses are normally detailed in that form. For example, you may have been charged mortgage points, property taxes, and mortgage interest at closing. Provide a copy of such paperwork to your tax preparer so they may be properly deducted.
Have Your Mortgage Interest Statement On Hand
Mortgage interest payments on first mortgages, secondary mortgages, home equity mortgages, and home improvement loans are often tax deductible. You will receive a statement, marked as Form 1098, from each mortgage company. It will detail total interest paid for the year 2016. It will also summarize charges for mortgage insurance, which is only deductible if you meet certain criteria.
More on 2017 Franklin TN Home Ownership Tax Tips
Maintaining detailed documentation and receipts is important for taxes and lowering your tax liability. Whether it is interest and tax payments or home renovations, knowing what you have spent can help with the current and future tax years. Follow my blog for additional property ownership and 2017 Franklin TN home ownership tax tips.
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