Forex

If you purchased a new home, there is excellent news from a tax perspective. There are some hefty tax deductions for new home owners available.


Spending money on a new home not only costs you, but it can also save you! From the time you buy your new house, you can save money. There are several important tax deductions for new and old home owners alike. Sit back on your comfy couch in your new office and deduct! If, in purchasing a new home, you have also sold an old one, you have even more deductions coming.

During the tax year, all of the mortgage interest up to one million dollars is eligible for refund. You are also eligible to deduct your equity loan interest. You can deduct up to one hundred thousands dollars for your equity loan interest paid during the tax year. Did you do some work on your new house after purchasing? If you invested in home improvements, they are another deduction for you. If you have taken out a loan to complete the project, you can apply your interest paid as a deduction. Unlike other interest deductions, there is no limit. However, your improvements must be major capital improvement, such as landscaping or a pool. Minor projects such as painting and small repairs do not apply.

Real Estate Property Taxes are also completely eligible for deduction! If you are a new homeowner and are paying property taxes, you can deduct this amount in full. If you have used any of your new home as a workspace, this is also a profitable deduction. Check with the IRS for specific deductions related to your home office.

If you have sold your old home to build or buy a new one, there are several deductions you shouldn’t miss. All of your selling costs such as legal fees and advertising costs are covered in deductions. Likewise, if you make home improvements with the intent of making your home more sellable, they are eligible. In addition, if you moved as a result of job transfers, many of your eligible moving costs are deductible. There are several eligibility requirements for deducting moving costs, so check with the IRS to make sure you qualify.

Whether you have never owned a home before or are a seasoned buyer, your new home will save you money. While ordering your taxes can be time consuming, take the opportunity to get some of your spent money back. Itemizing your deductions will be well worth the effort when you see your tax return!