The tax deadline is just around the corner! Home ownership offers several tax advantages, so be sure to take full advantage of them all. The 2017 Southern NH homeowner tax advice in this article will help with your tax preparation.
Pull Out Copies of Paperwork from Your Closing
If you purchased a house or refinanced a mortgage this past year, you should have received a form that details closing expenses. Some of them are tax deductible and may not be included in other tax documents. Some examples are points, interest paid in advance, and pre-paid taxes. Do not forget these when you complete your taxes.
Have Your 1098 Form Ready
Interest expenses on first mortgages, second mortgages, home equity loans, and home improvement loans are often tax deductible. Each mortgage company will send a Form 1098. It will detail amounts paid for the last calendar year. It will also note amounts paid for PMI, which is only deductible if you meet certain criteria.
Calculate Property Taxes
Taxes are another tax deductible property expense. If you contribute tax money into escrow monthly, that figure is not the correct figure to deduct. Figure out the accurate tax paid based on tax bills received from your local city or town and the closing statement (if you bought or refinanced last year).
Retain Receipts for Property Renovations
Keep track of all property repair expenses. Some improvements, such as those to increase energy efficiency (windows, doors, heating and air conditioning systems) could be eligible for energy improvement tax credits. Adding renewable energy components such as solar panels fall under yet another tax credit program. Even if your repairs do not fall under these categories, this information will help lower any taxes due on your future home sale.
More on 2017 Southern NH Homeowner Tax Advice
Retaining detailed records is a must for taxes and minimizing your taxes owed. Whether it is mortgage interest and city/town taxes or repairs, knowing costs can help with the 2016 and future tax years. Check our blog for more property ownership and 2017 Southern NH homeowner tax advice.