Mortgage Loan Interest
When you borrow money to purchase a home, you are eligible for mortgage interest deductions on the first $750,000 of the mortgage. To get this benefit, you’ll need to file an itemized deduction. We can help you do that with our 1099 specialists, and your return is traditionally significantly higher than our fees. This puts money right back in your wallet!
Mortgage Insurance
Many homeowners opt to purchase personal mortgage insurance. If you’ve purchased PMI, your payments can be deducted from your itemized tax return.
Discount Points
Discount points, or buying down the rate, are fees paid directly to the lender at closing. In exchange, the lender offers a reduced interest rate on your mortgage loan. If you’ve opted to buy down your interest rate, you are eligible for a deduction on your income taxes.
Necessary Home Improvements
If your home requires necessary home repairs to make the home safe, more accessible, or functional for the tenants, a portion of your costs can be deducted for tax purposes.
Home Equity Loan Interest
A home equity loan is similar to a mortgage loan, except a home equity loan uses the borrower’s equity in their home as collateral. If you get a home equity loan for home improvement projects, you can deduct the interest on your loan from your taxes.
Home Office Costs
Do you work from home (who didn’t in 2020?) If you are self-employed and have a home office, your office space and supplies can be deducted from your taxes.
Property Tax
Each state requires homeowners to pay property taxes to help fund school districts and local services, like police and fire departments. You can deduct up to $10,000 as a couple, or $5,000 as an individual filing independently, from your property tax.
Capital Gains
When the time comes for you to sell your home, a portion of the profits, or capital gains, can be kept without taxation if the individual selling the home has lived in the home as their primary residence for two of the last five years. A married couple can keep up to $500,000 in capital gains, and an individual is eligible for $250,000.
To better understand what deductions you qualify for our team of 1099 specialists can aid you in this process.