PERKS OF HOME OWNERSHIP DURING TAX TIME
If you’ve purchased, refinanced or sold a home in 2016,homeownership tax advantages*are on your horizon. Here are a few ways that owning a home can help you save at tax time. Make sure you always consult a trusted tax professional for the latest tax rule changes and how they may apply to your unique financial situation.
- Visit www.IRS.gov or call 800.829.1040 for more information. Additionally, see the IRS Publication 530 “Tax Information For Homeowners”, an excellent reference available online at www.IRS.gov
2. INTEREST PAYMENTS ADD UP TO DEDUCTIONS*
Interest payments on a mortgage are fully deductible for most homeowners. This deduction is one of the key tax advantages to owning a home and can provide a proverbial tax shelter for homeowners. See IRS Publication 396 “Home Mortgage Interest Deduction” for more information.
- WHEN LOANS PAY OFF
Unlike other types of loans, the interest paid on home equity loans—including second mortgages, equity credit lines, and some refinancing—can be fully deductible. Please note that some state laws restrict home equity loans. Consult your tax advisor to learn more.
- TAKE A PAID VACATION
If you rent your vacation home or principal residence for 14 days or less per year, you won’t have to pay taxes on the rental income. If you had rent income on your vacation home, you may be able to deduct other expenses including depreciation, so long as the amount does not exceed the rent income total.
- DO SOME HOMEWORK*
Common home office expenses, like utilities and repairs, may qualify for deductions—even if you do the majority of your work in another location. If you or your family use the home office for non- business purposes, it cannot be claimed as a deduction.
- GET BACK SOME GREEN
The 30% federal tax credit for the cost of alternative energy equipment installed in your home remains available for 2016. There isn’t a maximum dollar limit for most property types. See IRS Form 5695 “Residential Energy Credits” for more information.
- NEW JOB PERKS*
You could qualify for a tax deduction if you moved for a new job or transferred for a job. Use IRS Form 3903 “Moving Expenses” to calculate your moving deductions, provided you were not reimbursed by your employer.
Since 2009, Scotsman Guide has been ranking the nation's top-producing mortgage brokers, originators and bankers. The award is named Top Originators and Top Mortgage Lenders. It is thoroughly audited, making Scotsman Guide's rankings the mortgage industry's most comprehensive, most intensely verified lists of their kind.
Senior Mortgage Banker, Miles D. Rusth of Summit Mortgage Corporation is a multiyear winner of the Scotsman Guide Top Mortgage Originator Award. Summit Mortgage Corporation is a local lender in Portland Oregon with two additional branches in Vancouver and Spokane Washington. Miles Rusth is passionate about helping his clients and truly stands out as a leader in his industry. Using a nationally top ranking mortgage banker has many advantages. Miles D. Rusth is licensed to originate mortgage loans in OR/WA/CA and is able to answer your questions concerning home ownership. Owning a home has many advantages beyond tax season. Owning a home can help you build your financial wealth, become a part of the community you love and allow you the creative freedom to make your house your home.
