I’ve been using the same tax accountant for about 15 years now and I always try to meet with her early enough to avoid the last-minute rush to April 15. This year, after we exchanged the usual pleasantries and I handed over the usual suspects – my W2s, charity receipts, car tab bill, etc. – she began the annual inquisition: “Did you buy a new car? Did you refinance? Did you do any remodeling?”
Now I have done all of those at one time or another, but not last year. And more’s the pity because any of those actions would have helped lower my tax bill. You see, I own a home.
Most people know there are significant tax advantages that come with buying a home. The government, in fact, uses these deductions specifically to encourage homeownership. Well, I suppose if you shell out hundreds of thousands of dollars for a roof and four walls it’s nice to get something back.
Are you taking full advantage of the tax deductions and credits the IRS earmarks for homeowners only? (Sorry, renters.) Do you know what they are? Did you know that real estate taxes count but HOA fees don’t?
Check out our Top Tax Breaks for Homeowners guide and learn how your biggest investment can help you maximize your 2016 income tax return.
- Discover which eco-friendly home improvements are tax-friendly too
- Understand how property taxes help take the sting out of your taxes
- Find out which tax breaks won’t be around after this year
My car is only two years old and my mortgage rate couldn’t get much lower so a new car or a loan refinance probably aren’t in the cards for me this year. But if I’m really clever, maybe I can get Uncle Sam to help me out with that new kitchen floor I’ve got my eye on.
Download our Top Tax Breaks for Homeowners guide now.