This year’s tax filing deadline is Tuesday, April 17, and homeowners are in a position to take advantage of a number of special deductions. The keys to maximizing your deductions and credits are to educate yourself about which ones you qualify for and then organize all of the documents required to benefit from them.
First and foremost, speak to your tax advisor about whether or not to itemize your deductions. If you choose to go that route rather than taking the standard deduction, you may be able to deduct home-related expenses such as mortgage interest, property taxes, and loss from property damage or theft. These deductions require submission of financial documents and receipts, so it makes sense to file these away during the course of the year either in hard copy or digitally so they are ready when you need them.
In addition, consider discussing these other deduction opportunities with a tax professional:
- If you were relocated through your work in 2017, some of your moving expenses and closing costs on your home may be deductible.
- Home improvement expenses aren’t deductible in the year they are made, but hold on to the receipts. They can help lower your tax burden when you sell your home in the future.
- If you work from home, you may be able to deduct some of the expenses incurred from using your home for business.
- Tax credits are available to those who install a solar energy system, with credit amounts starting at 30 percent and gradually decreasing and eventually phasing out after 2021.