Owning a home can have amazing tax benefits. The key is knowing what to do to take advantage of them. The professional tax preparation team at ZP Tax in Silver Spring, MD, specializes in helping new home buyers get the credits to reap financial benefits and reduce any related debt.

To get the most from your decision to buy a house, consider the following helpful tax tips:

Choose Itemized Deductions

During the first year of home ownership, you could qualify for a number of money-saving deductions. To get there, itemize deductions rather than going with standard deductions. From real estate taxes to premiums paid towards private mortgage insurance, you may be eligible to claim some of these expenses.

Finish Home Improvements

Another tax-saving tool is to complete any home improvement projects before the end of the tax year. There are a number of federal tax credits for those who invest in items such as energy-efficient appliances, room renovations, and add-ons. The credits could potentially reduce or even eliminate any taxes owed.

Apply for Homeownership Credits

There’s a program for first-time home buyers called the Mortgage Credit Certificate Program. Eligible participants can receive up to 30% of their mortgage interest back by way of a federal tax credit. While the program kicks off during the first year of home ownership, participants can remain in it for the life of their mortgage loan.

Get A Jump Start

After buying your home, consider getting started right away on preparing your income tax return. This way, a tax preparation agent can compute your personal and, if applicable, business taxes, to find out early how much of a refund you may qualify for. Likewise, a professional will also uncover any additional channels to offset home expenses paid during the first year of ownership.

Review IRA Information

Those who have individual retirement accounts (IRA) are eligible to use up to $10,000 towards transactions, such as home closing costs and down payments. The good news is you won’t be hit with a penalty for early withdrawal if you show documentation that the funds were used to pay for such expenses.

ZP Tax is your trusted source for expert tax preparation, especially if you’re a first-time home buyer. You can count on your personal agent to provide you with the latest updates on credits and deductions as well as tax education tips applicable to your unique financial situation. To get started, call (301) 587-4829 to arrange an appointment to complete your tax return. Visit the website for additional tax help information.