Are you considering purchasing your first house? If so, you should know there are specific tax benefits you can receive as a new homeowner. Tostrud & Temp, S.C. of the La Crosse, Wisconsin, area have been helping residents find all possible deductions for over 35 years. Here, their accountants discuss a few tax breaks you’ll receive as a first-time property owner.
Accountants List 3 First-Time-Homeowner Tax Breaks
1. Mortgage Interest & Property Tax Deductions
Most first-time homeowners are over the moon to discover the interest they pay on their mortgage is deductible and will significantly reduce their taxable income. In addition, you are allowed to deduct your annual property taxes.
2. Energy Tax Credit
The government rewards those who go green by replacing less efficient household appliances with energy-efficient and ecologically sound models. In fact, you can save up to 30%; for a list of applicable appliances, simply check out the ENERGY STAR® website.
3. Home Enhancement Tax Breaks
Need to update the air conditioning system in your new home? How about the plumbing? Well, keep track of what you spend. Homeowners are allowed to deduct the cost of any improvements in the year they incur the expense. The updates may also come into play by reducing your taxes in the year you sell your home.
If you’re a first-time homeowner and are wondering which deductions you’re eligible for, turn to the accountants at Tostrud & Temp, S.C. They’ll review your information and ensure you receive all the breaks you are eligible for. Call them today at (608) 784-8060, or visit their website for more information.