Taxpayers can now learn about various tax breaks and deductions for this year if they purchase a home, by going to the American Tax Service website.
June 29, 2015 — Frank Ellis, a Traverse City tax expert and published author, now offers information for homeowners regarding tax breaks and deductions for 2015. The article on the American Tax Service website looks at 10 tax breaks for Americans who purchase homes. It reveals mortgage interest up to $1.1 million can usually be written off, for primary and secondary homes, and property taxes can be as well. More federal income options are available for homeowners than renters, the author reveals.
Data from the Congressional Research Service is cited, showing American homeowners were saving an average of $1,900. This has opened the door for many opportunities for first-time home buyers, the author says. Mortgage interest deduction tax breaks were used by 50% of homeowners in 2012, he states, and there are even more tax breaks which are listed and explained in the article.
One is to write off origination and discount points on tax returns, which is like prepaid interest to the IRS. Ellis explains how one can deduct all the points at once, or spread the costs throughout the entire mortgage lifespan. Depending if one gets a mortgage for a first home or refinances, there are different sets of rules.
Other tax breaks mentioned in the article include deductions for interest on home renovation loans, property taxes, and energy efficiency improvements. The costs of energy efficient windows, insulation, and HVAC systems are deductible for a tax credit. Similarly, there is a renewable energy tax credit for installing sun and wind power systems.
Reverse mortgages, private mortgage insurance, and first-time home purchases using an IRA also qualify taxpayers for a deduction. In addition, the author reveals the benefits of filing taxes with H&R Block and using their tax refund calculator.
For information on the homeowner tax breaks mentioned and others, read the article at http://americantaxservice.org/homeowner-tax-breaks-and-deductions/.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
American Tax Service
945 East 8th Street Suite A
Traverse City, Michigan 49686
Check out those popular press releases