In spite of the fact that it might not have been your sole purpose of purchasing a house, tax breaks are an amazing advantage of homeownership. As indicated by U.S. News, almost 19 million citizens will benefit by from itemized deductions this year (2019). Here are 5 tax breaks you should exploit:

  • Mortgage Interest

Something each property holder can rely on this tax season is deducting mortgage interest. This means that you can deduct any interest you paid on your home — up to $1 million in loans. This also includes deducting interest on a refinanced mortgage (with certain debt constraints).

  • State and Local Taxes

Try not to fret — those thousands of dollars you paid for state and local property taxes are actually deductible. In actuality, you can deduct a limit of $10,000 of your paid total property taxes, state income tax, or state/local sales taxes.

  • PMI

Pre-Mortgage Insurance with properties that have under 20% down is deductible.

  • Rental property

Rental properties frequently offer bigger deductions and tax breaks than most investments. A considerable number of these are overlooked be landlords at tax time. This can create a difference in making a profit or losing cash on your real estate venture. If you own a rental property, the IRS enables you to deduct costs you pay for the maintenance and upkeep of the property, conserving and managing the property, and other necessary costs related with property rental.

  • Energy Tax Credit

Citizens who remodel their homes to use sustainable energy resources might be qualified for a tax credit to balance a portion of the costs. As of the 2018 tax year, the federal government offers the Nonbusiness Energy Property Credit. The credits are good through 2019 and after that are decreased every year through the end of 2021. Claim the credits by filling Form 5695 with your tax return.

While these tax breaks should help you make a solid decision of buying a home, you would still need the help of professional real estate experts who can help you find your dream home. Such is the service offered by Coldwell Banker by Eric Glassoff. His main goal is to assist clients to buy/sell condominiums, single family and multi-family homes in the Brookline, Newton, Cambridge, Back Bay, Beacon Hill, South End, Brighton, Allston and the surrounding Greater Boston areas. So if you’re looking for the best condos for sale in Brookline, MA, get in touch with us!