2016 Tax Deductions for Homeowners

Tax season is here, and as homeowners, it’s important to know what types of deductions you can capitalize on to get more back in that yearly check. Here are a few different tax write-offs home buyers and homeowners can take advantage of in 2016.

Items Eligible for Tax Deductions in 2016:

Mortgage Interest – the mortgage interest that you pay on your home, as well as a second home if you have one.

Interest on Home Equity Loan/Line of Credit – you can deduct up to $100,000 borrowed for a home equity line of credit or loan.

Property Taxes – deduct property taxes as well as any taxes you reimbursed the seller for if you purchase the home in 2015.

Premiums on Mortgage Insurance Premiums – if your policy was issued after 2006, you are eligible to claim deductions for mortgage insurance premiums. *Note there are income maximums to be eligible for this. Also, as of right now, 2016 is the last year to claim this.

Home Improvements for Medical Care – essentially these are home renovations that were made to meet the needs of someone with a chronic illness or someone that is disabled.

Energy-Saving Updates – currently you can write off 30% of the cost under the Residential Renewable Energy Tax Credit. This includes items such as solar panels, solar water heaters, and geothermal heat pumps.

Points Paid Off – if you paid points to get a better rate on your home loans and paid it off in 2015, you are eligible to deduct that for a tax break.

While these are a set of deductions that many homeowners and buyers can take advantage of for their 2015 tax year, there may be additional areas that you qualify for based on a unique set of requirements. Make sure to consult with your tax consultant or accountant to get the best return this year.