5 Overlooked Tax Savings for The Home

5 Overlooked Tax Savings For The HomeHopefully, since it’s already mid-April, you’ve already filed your taxes since they are due before April 15 (a most dreaded day for some)! But if you haven’t, we have a number of blogs that can assist you in the process like 4 Tax Tips for Homeowners and Why Your Credit Score Is Important and How to Fix It. However there are times (especially for the procrastinators) where crucial tax savings related to the home are missed. This blog will identify 5 overlooked tax savings that could be applied for both the recent homebuyer AND home seller, according to realtor.com.

  1. Go Green With Savings!

            “Green Homes” or homes that use multiple forms of energy-saving resources are a popular trend among today’s homebuyers. It might be because these resources, like solar panels or “geothermal heating systems” could get as much as a 30% tax deduction of the cost of equipment!

  1. Work From Home And Save.

With technology playing such a major role in our lives these days, working from home is also another popular trend among young homebuyers. This trend makes home offices a very “in demand” feature of the homes they are searching for. Well, for both renters and homeowners alike, if the home is under 300 square feet, you can either multiply that square footage by $5 and receive up to a $1,500 deduction OR, as with other business expenses, you can simply take away certain costs of the office such as the utilities, taxes, etc.

  1. Sellers Save Too.

            This tip doesn’t matter if you are a single homeowner or a joint homeowner because it can apply to both; the single sellers can keep a $250,000 portion of their home sale and the joint sellers can keep $500,00. According to realtor.com, other things that sellers can save on if they sold a home in 2014 could include:

  • Commissions
  • Closing cost credits
  • Staging Costs
  • Fees associated with the sale
  1. Relocate And Save.

Planning to move for a new job? Depending on how far you go, you could save! The location of your new job must be at least 50 miles farther from your previous one in order to earn this deduction.

  1. Mortgage Savings.

For this tax deduction it doesn’t matter if you have one home or multiple because it can be used for all. It also doesn’t matter if you have a first mortgage, a second mortgage, or a home equity loan because these mortgage savings apply to those as well!

Finally, it’s crucial to remember everything and it doesn’t hurt to double-check things or have a family member double-check it for you. Some other things that you might not realize get overlooked in tax filings include things like missing social security numbers, a wrong name change (for marriages or divorces, etc.) and even simple math mistakes! Our next blog will go over some common mistakes that are made when filing taxes in general, not just for the homeowners or homebuyers. But for the time being you should have some great things to consider when filing your taxes this year!

Happy Filing!

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Until Next Time,

Jim

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