Needham Home Ownership Tax Tips

The tax deadline is swiftly approaching! Make the most of tax benefits provided to property owners. The Needham home ownership tax tips in this article will help with your tax preparation.

Track Home Improvement Expenses

Retain expenses from any repairs or other work completed on your property. Some repairs, such as energy efficiency improvements (doors, windows, HVAC systems) may be eligible for energy tax credits. Renewable energy improvements such as solar panels qualify for an additional special tax credit. Even if your upgrades do not apply to any special tax credits, this information will help lessen any capital gains taxes that may be owed on the sale of your property down the road.

Include Property Taxes

Taxes are another tax deductible home owner expense. If you pay tax money into escrow monthly, that monthly amount is not the proper amount to use. Figure out the actual tax paid based on invoices received from your local city or town and your statement from the closing.

Keep the 1098 Form from Your Mortgage Company

Mortgage interest expenses on first mortgages, secondary mortgages, home equity loans, and home improvement loans are commonly tax deductible. You will receive a mortgage statement, known as Form 1098, from each lender. It should specify amounts paid during the year 2016. It will also reference amounts paid for PMI, which may be used in your taxes if you qualify.

Obtain Copies of Closing Statements

If you purchased a property or refinanced a home loan in 2016, you should have been given a form that details the expenses. Tax deductible closing costs are typically detailed in that paperwork. Some examples are points, interest charged in advance, and property tax adjustments. Refer to this paperwork when you complete your taxes.

More on Needham Home Ownership Tax Tips

Keeping detailed records is important for taxes and getting the most out of your home ownership benefits. Whether it is mortgage interest and city/town taxes or repairs, knowing expenses can help with the 2016 and subsequent tax periods. Check our blog for additional home ownership and Needham home ownership tax tips.