Owning a home is your biggest and most useful tax asset!
Property Taxes Deductible
You'll get to deduct up $10,000 of your property tax bill. That includes all state or local taxes. It doesn’t include any trash or garbage collection fees or homeowner association charges specifically stated and billed.
If you’re taxes are impounded you get the deduction when your bank makes the payment.
Even if you’re a tenant shareholder in a co-op, you get to deduct your share of any property taxes paid.
Interest Payments Deductible
Interest paid on the loan on your your principal residence is deductible. You can also deduct the interest you pay to buy a second residence or vacation home. The personal-interest deduction is limited to the first $750,000.
You can also deduct the interest on home equity loans up to $100,000 . You can also deduct loan refinance fees when pull money from your home equity .
Beginning in the tax year 2014 (returns filed in 2015), taxpayers may use a simplified option when figuring the deduction for business use of their home. However, this simplified option does not change the criteria for who may claim a home office deduction. It merely simplifies the calculation and record keeping requirements of the allowable deduction.
Highlights Of The Simplified Option
Standard deduction of $5 per square foot of home used for business (maximum 300 square feet).
Allowable home-related itemized deductions claimed in full on Schedule A. (For example, Mortgage interest, real estate taxes).
No home depreciation deduction or later recapture of depreciation for the years the simplified option is used.