The tax deadline is a short time away! Make the most of tax benefits provided to property owners. The Florida home ownership tax advice in this article will help with your 2016 taxes.
Calculate Money Spent on Home Renovations
Keep copies of expenses from any repairs or other work performed on your home. Some repairs, such as energy related upgrades (windows, doors, HVAC systems) could be eligible for energy improvement tax credits. Adding renewable energy components (i.e. solar panels) qualify for an additional tax credit program. Even if your upgrades do not qualify, they can be used in the future when calculating how much, if any, capital gains tax you may owe on your property sale.
Find Out What You Paid for Property Taxes
Taxes are another tax deductible homeownership cost. If you pay money towards property taxes every month as part of your home loan payment, that monthly amount is not the correct dollar value to use. Figure out the correct amount based on tax bills received from your local city or town and your closing statement (if you bought or refinanced in 2016).
Look for Your 1098 Form from Your Lender
Interest expenses on primary mortgages, secondary mortgages, home equity mortgages, and home improvement loans are commonly tax deductible. Each lender will mail a mortgage interest statement to you. It should specify the mortgage interest total for the 2016 year. It may also include charges for mortgage insurance, which might be used in your taxes if you meet the income and other criteria.
Pull Out a Copy of Paperwork from Your Closing
If you purchased or refinanced a home during 2016, you would have been given a document that details closing costs. Many of them can be applied as deductions on your taxes and may not appear in other tax documents. For instance, you could have been charged points, property taxes, and mortgage interest. Refer to this paperwork when you complete your taxes.
Summary of Florida Home Ownership Tax Advice
Maintaining good records is important when it comes to taxes and minimizing your taxes owed. Whether it is interest and tax payments or repairs, knowing costs can help with the 2016 and future tax years. Follow our blog for more home ownership and Florida home ownership tax advice.