Tax Preparation Tips
2017 MA Home Buyer Tax Advice
The filing deadline for income taxes this year is Tuesday, April 18, 2017! Do not miss out on money saving tax benefits of real estate ownership. The 2017 MA home buyer tax advice in this blog will help with your tax returns.
Look for the 1098 Form from Your Mortgage Company
Interest payments on first mortgages, secondary mortgages, home equity mortgages, and home improvement loans are likely tax deductible. Each mortgage company will mail a mortgage interest statement to you. These statements will detail amounts paid during the previous calendar year. It may also note charges for PMI, which might be deductible if you fall within the income and other requirements.
Calculate Amounts Spent on Home Repairs
Hold onto receipts from any repairs made to your house. Some repairs, such as those to increase energy efficiency (windows, doors, air conditioning and heating systems) may qualify for special tax credits. Renewable energy upgrades such as solar panels are covered by a separate special tax credit. Even if your upgrades do not fall under these categories, this information will help decrease any taxes that may be owed on your future property sale.
Keep a Copy of Paperwork from Your Closing
If you bought a property or refinanced a home loan during 2016, you would have received a form that outlines closing expenses. Some of these expenses can be used as deductions on your income taxes and might not be included in other tax forms. For example, you might have been charged points, property taxes, and interest. Provide a copy of such paperwork to your accountant so they can be properly included.
Do Not Forget Property Taxes
Taxes are another expense that is tax deductible. If you pay tax money into escrow monthly, that monthly amount is not the proper dollar value to use. Find out the correct amount using invoices sent by your local municipality and the closing statement (if you closed or refinanced in 2016).
Final Thoughts on 2017 MA Home Buyer Tax Advice
Retaining detailed documentation is critical for taxes and reducing your tax liability. Whether it is interest and tax payments or repairs, knowing costs will help with the 2016 and future tax years. Follow our blog for future property ownership and 2017 MA home buyer tax advice.
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