4 Tax Deductions That Are Amazing For Homeowners
Tax season is here, but there is still time for homeowners to maximize their tax savings. Here are tips to help you reap home-related deductions.
The Holy Grail of All Tax Deductions: Mortgage Interest
The most significant tax deduction available for many people is based on the interest paid for their home mortgage. The mortgage tax deduction can be for interest paid on loans for no more than two residences. That could be any combination of a primary residence, second home, vacation home, or potentially even a boat, or recreational vehicle, provided there is plumbing and a bathroom.
For those lucky enough to own more than two properties, make sure to use the deductions from the property that will yield the largest tax deduction. People often assume that the biggest mortgage payment will produce the most significant tax deduction, but that is not always the case. Generally, more of your payment is applied to the principal, and less to interest, the longer you’ve had your mortgage.
Read the full article at Forbes.com