What are the Tax Tips for Homeowners in US?
In order to take advantage of home-related tax deductions, you’ll have to do a long form 1040 and also file a Schedule A – but that is usually a minor irritation compared to the amount of money you will save. Mortgage Interest Normally, the interest that you pay on your home’s mortgage is tax deductible. You can even deduct interest on multiple properties that you own, up to a value of $1 million. Even better, your “second home” can be a boat or even a camper, if it has facilities for cooking, sleeping, and a bathroom. The only criteria for this is that you actually used the money in question to buy, build, or make improvements on a home. Generally, your lender will send you an IRS Form 1098 each year. This details the amount of mortgage interest that you paid over that year. To claim the deduction, record this item on your Schedule A. Many homeowners are not aware that mortgage interest deductions may also include late payment fees and pre-payment penalties. This applies only if the f
