2017 Tax Advice For Waltham MA Home Buyers

The income tax deadline this year is April 18, 2017! Home ownership offers several tax benefits, so be sure to take advantage of them. The 2017 tax advice for Waltham MA home buyers below may help with your taxes this year.

Look for the Mortgage Interest Statement from Your Mortgage Company

Mortgage interest expenses on first mortgages, second mortgages, home equity loans, and home repair loans are likely tax deductible. You will receive a statement, noted as Form 1098, from each lender. These statements should detail total interest paid during the year 2016. It may also summarize amounts paid for PMI, which may or may not be deductible based on your income level.

Keep Receipts for Home Repairs

Keep copies of receipts from all repairs or other work performed on your home. Some improvements, such as energy related improvements (doors, windows, air conditioning and heating systems) may be eligible for energy tax credits. Installing renewable energy features such as solar panels fall under an additional special tax credit. Even if your improvements do not fall under these categories, they can be helpful years later when calculating how much, if any, capital gains tax may be due on the sale of your home.

Obtain Copies of Closing Statements

If you purchased or refinanced a house in 2016, you should have received a form that outlines your expenses. Tax deductible closing expenses are typically detailed in that paperwork. Examples of expenses that can be deducted are points, interest paid in advance, and pre-paid taxes. Give a copy of such statements to your accountant so they can be properly deducted.

Include Property Taxes

Property taxes are another expense that is tax deductible. If you pay an amount towards these taxes every month, that monthly amount is not what you should use. Figure out the correct amount based on tax bills received from your local tax collector and your statement from your closing.

Final Thoughts on 2017 Tax Advice For Waltham MA Home Buyers

Keeping good records is a must for taxes and getting the most out of your home ownership benefits. Whether it is interest and tax payments or home renovations, tracking expenses can help with the current and subsequent tax periods. Follow our blog for additional property ownership and 2017 tax advice for Waltham MA home buyers.