Did you recently buy a home or are thinking of purchasing one in the near future? Buying a home will be one of the most expensive decisions you can make in your lifetime and fortunately, there are many tax advantages of doing so.
The most popular tax benefits come in the form of deductions. A tax deduction is a deduction that lowers a person’s tax liability by lowering his taxable income (Investopedia).
Here are two of the top tax advantages of buying a home.
Mortgage Interest
You may be eligible to deduct all of your home mortgage interest and in some instances, even late fees. Be sure to keep track of all the forms detailing the amount of interest paid against your mortgage and closing.Real Estate Taxes
You also may be eligible to deduct the amount you pay in property taxes. Be sure to save your records for property tax payments. This information will be available on your 1098 form if you pay your taxes through a lender or escrow account.
To learn more about Taxes for homeowners, visit the IRS.gov or call Metro Tax Solutions at 347-627-6262.