Owning a home has benefits at tax time, like getting the property tax and mortgage interest deductions. But tax laws are ever evolving and many home owners don’t know of some deductions they could be taking. We’ve done some research at Rockford Homes, your Columbus, OH home builders, and want to pass this information on to you. As always, be sure to speak with a tax professional or go online and do further research!
Tip 1: Home Office
If you use your home office space for nothing other than work, full-time or part-time, it may qualify as a home office expense. It doesn’t have to be a complete room, just a dedicated office space. It must be either your principal place of business, or where you see clients, patients, or customers. If you have an office someplace else and use yours to do office work at home on weekend or evenings, this deduction won’t apply.
Tip 2: Energy Efficiency
This one is a good one, if you have built or renovated your home in 2016. You may be eligible for an energy efficiency tax credit for green improvements. Have you installed storm doors, new energy efficient windows, heating or air conditioning? There are new Energy Star tax credits available for purchases made in 2016 that were used in existing homes, not new construction. Tax credit information from Energy Star for new construction is also available here: Energy Star new construction. There are exceptions to these, so do your research!
Tip 3: Mortgage Points
Most of us itemize, and if you do, you may be able to deduct the prepaid interest, or points, that you paid to purchase or build your home in 2016. These points are the fees you were charged from your mortgage lender. If you refinanced your home, these points are deductible over the life of the loan. More info can be found at the IRS site.
Taxes can be overwhelming, and speaking with a tax professional is a great start. Buying a home with us at Rockford Homes isn’t overwhelming at all. We’ll walk you through every step of the process, paying close attention to your specific needs. You’ll get exceptional quality and value when you build with us!