Taxes are coming up soon so it is time to start analyzing what breaks you might be able to get before you file in April. Check out this article from Trulia that sheds light on some of these common home-related tax breaks that are very often underused or overlooked: https://www.trulia.com/blog/3-often-overlooked-real-estate-tax-breaks/
Here are overviews of three home-related tax breaks you could get:
- State and local tax breaks for green home improvements
Many homeowners have been taking steps to improve their homes’ energy efficiency for reasons including cash savings on various utility bills. A lot of the following things may be eligible for state, county, and/or city tax credits: dual-paned windows, insulation, low-flow plumbing appliances, tank-less water heaters, or solar panels.
- Mortgage interest tax break
According to the American Institute for Economics Research, only 63% of homeowners who are eligible to do so itemize deductions, which is a prerequisite before taking the mortgage interest deduction.
- COD tax exemptions
And if you were in the position to close a short sale or settle on a defaulted home loan last year than you may have a good chance of taking the COD tax break on this year’s tax return.