Home tax deductions are often difficult to figure out in the rush to prepare your income tax forms. If you bought a new home, sold a home, refinanced your mortgage, or did some recent home improvements here are a few things to keep in mind throughout the year.
- Keep receipts for home improvements.
- Mortgage interest, lender points, property taxes, and interest on home improvement loans are all tax deductible.
- When you purchase or sell a home, make copies of any agreements and store the copy in your income tax folder.
Tax forms and instructions offer some help while trying to figure out your home tax deductions, however, they don’t automatically compare your standard deduction versus itemized deduction, nor alert you to other home tax deductions available to you.
If home tax deductions are giving you a headache, try TurboTax Deluxe or H&R Block Deluxe editions. The Deluxe edition prices range from $25 to $35 and usually the price increases the closer we get to April 15. Common home tax deductions supported by both the TurboTax Deluxe and H&R Block Deluxe software are:
- Home improvement tax deductions.
- Second home tax deductions.
- Home equity loan tax deductions.
- Property tax credits.
- Home purchase tax deductions.
- Selling home tax deductions.
- Capital gains tax calculations.
- Claiming first time home buyer tax credits.
- And more.