Homeowner Tax Tips

Here are some suggestions for ways you may be able to lower your tax liability:

1. Itemize Mortgage Interest and Property Taxes

In addition to medical expenses and charitable contributions, homeowners can sometimes deduct their mortgage interest and some or all of their state and/or local property taxes. Add these items to your other potential deductions to see if itemizing is a better option than taking the standard deduction.

2. Invest in Energy Efficiency

The government offers homeowners incentives for making energy-efficient upgrades to their homes, most notably adding solar power systems. Energy upgrades can decrease utility bills while increasing your tax refund.

3. Track Home Office Expenses

If you run a business primarily out of your home, you can deduct certain work-related expenses along with the cost of depreciation for your home office area. Not everyone can take advantage of this incentive, but self-employed homeowners who work out of the house would be wise to look into it.

4. Save Receipts for Your Sale

Whenever you spend on home improvements, make sure to save all the receipts. These expenses won’t factor into the current tax year, but you may be able to deduct them if you ever decide to sell your house.

Although we believe these tips could be helpful for many homeowners, keep in mind that Envoy Mortgage does not provide targeted tax advice. We recommend meeting with a tax advisor to discuss the opportunities available to you. You can’t avoid the IRS, but if you’re a savvy homeowner, you can avoid paying more than you have to.