Does money grow on trees? Well, it just might, especially if you buy a home this year! One of the many perks of owning a home is the tax breaks you will receive. So whether you’re doing your taxes yourself or getting help from a tax professional, it is important to make use of those homeowner tax breaks! April 15, is quickly approaching and maybe, just maybe, you will find money growing on a tree in your new yard! Don’t forget to apply the following:
Mortgage Interest Deduction: Before buying a home, a standard deduction may have made the most sense when you prepared your taxes. However, homeowners can deduct the interest portion of their mortgage payments, and the earlier you are in the life of your mortgage, the greater the percentage of each payment that goes toward interest, so be sure to take advantage of this right away!
Home Office: If you run your business out of your home, then there are specific criteria that have to be met in order to deduct home office expenses, but it can lead to a very large tax deduction. In general, your home office has to be used specifically for business purposes. Be sure to consult with a tax professional to see if your home office qualifies for a deduction—it’s a little extra work, but can make a big difference in your tax responsibility.
