Boston Property Management: Tax Breaks
The good thing about owning a home is that you can get a lot of tax deductible expenses. So if you are smart enough you can get some write-offs on your tax returns.
The law is good enough as it will allow you to deduct your mortgage interest you make on your home. However the cap is up to a $1-million loan for a couple filing jointly. It is good as it allows you to claim that on your home equity line of credit and your second mortgage. Those who own a second home can deduct mortgage interest only if they reside for more than 14 days per year.
Mortgage points and insurance
The IRS allows you to deduct points you pay on your mortgage as well as the home equity loan. They only have to be paid over the length of the loan. In the event that you pay premiums for private mortgage insurance, you can get deductions if you earn less than $109,000.
Boston Property Management: Property taxes
The best thing is that property taxes can be taken as a deductible expense. So keep a record of everything so that you can claim it.
Those people who have home businesses can claim deductions. The only criteria is that you have to do a lot to qualify for it. This means that your home must be the primary base of business and the office space is only used for work. It also allows you to deduct up to a maximum of 300 square foot.
Those homes which have implemented energy-efficient improvements can get credit of up to 10 percent of those improvements. The cap for that figure is $500 where it covers expenses like doors, windows, insulation, cooling etc. If you get a renewable energy system, then you get credit of up to 30 percent.
Medical home improvements
Homeowners with medical conditions can also get a tax break. So for reason if you need to install a stair lift then you you can write off those costs. The only catch is that your medical costs have to exceed 10 percent of your gross income. The law also states that you can only claim the difference in the cost of the equipment as well as the increase in the value of the home. Improvement which help the residents but don’t add any value to the home can be deductible if there are income requirements.
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