The filing deadline for income taxes this year is Tuesday, April 18, 2017! Make the most of tax benefits extended to homeowners. The 2017 Newton MA homeowner tax tips in this article may help with your 2016 taxes.
Determine Include Property Taxes
Municipal taxes are another tax deductible home owner expense. If you contribute tax money into escrow each month, that monthly total is not the accurate figure to use. Find out the actual tax amount based on invoices received from your local municipality and your statement from the closing.
Retain Receipts for Property Improvements
It is helpful to retain receipts for all home improvements. Some improvements, such as energy related upgrades (windows, doors, air conditioning systems) could be eligible for special tax credits. Installing renewable energy features such as solar panels qualify for yet another special tax credit. Even if your repairs do not apply to any particular tax credits, these costs will help lower any capital gains taxes that may be owed on the sale of your house later on.
Look for a Copy of Closing Statements
If you purchased or refinanced a house during 2016, you would have received a form that outlines your expenses. Tax deductible closing expenses are normally detailed in that paperwork. Examples of line items that could be deducted are mortgage points, pre-paid interest, and pre-paid property taxes. Provide a copy of such paperwork to your tax preparer so they can be properly deducted.
Keep Your 1098 Form from Your Mortgage Company
Interest paid on primary mortgages, second mortgages, home equity mortgages, and home improvement loans are often tax deductible. Each mortgage company will provide a Form 1098. These statements will detail the amount of interest paid for the year 2016. It may also include amounts paid for mortgage insurance, which is only deductible if you qualify.
More on 2017 Newton MA Homeowner Tax Tips
Maintaining good documentation and receipts is important for taxes and minimizing your taxes owed. Whether it is interest and tax payments or home renovations, tracking what you have spent can help with the 2016 and subsequent tax years. Follow our blog for more home ownership and 2017 Newton MA homeowner tax tips.