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Tax Tips for Homeowners: Navigating the Season with DNVR Lending
February 6, 2024
As the tax season approaches, homeowners have the opportunity to capitalize...
Introduction:
As the tax season approaches, homeowners have the opportunity to capitalize on various tax benefits associated with owning a home. DNVR Lending understands the importance of maximizing these advantages. In this blog, we'll explore key tax tips for homeowners, providing practical advice to help you make the most of the tax benefits linked to homeownership.
1. Understand Mortgage Interest Deduction:
One of the significant perks of being a homeowner is the mortgage interest deduction. Homeowners can deduct the interest paid on their mortgage loans from their taxable income. DNVR Lending recommends keeping track of your mortgage interest statements and understanding the limits imposed by the IRS. This deduction can result in substantial savings come tax season.
2. Keep an Eye on Property Tax Deductions:
Property tax deductions are another essential aspect of homeownership tax benefits. DNVR Lending suggests staying informed about your property tax payments and ensuring they are accurately reflected in your tax documentation. Specific property tax deductions, such as those related to property taxes, insurance, one-time expenses, HOA dues, and depreciation, may apply. However, it's crucial to seek advice from your CPA for professional guidance tailored to your individual scenario.
We recommend consulting with a qualified CPA for personalized advice on your specific property tax situation. Our preferred professional is Natalie M. Guard, CPA.
Natalie M. Guard, CPA
44 Cook Street, Ste 100
Denver, CO 80206
O: 303-780-7307 ext 107308
C: 703-303-4388
www.nguardcpa.com
natalie@nguardcpa.com
3. Utilize Energy Efficiency Credits:
Investing in energy-efficient home improvements can not only reduce your utility bills but also qualify you for tax credits. DNVR Lending encourages homeowners to explore energy-efficient upgrades such as solar panels, energy-efficient windows, or insulation improvements. These upgrades may make you eligible for valuable tax credits, contributing to both environmental sustainability and financial savings.
4. Take Advantage of Home Office Deductions:
The rise of remote work has led many homeowners to create dedicated home office spaces. DNVR Lending advises homeowners who use part of their home for business purposes to explore the home office deduction. This deduction allows you to claim a portion of your home-related expenses, such as mortgage interest, property taxes, insurance, one-time expenses, HOA dues, and utilities, as business expenses.
5. Stay Informed About Capital Gains Exclusion:
For homeowners planning to sell their primary residence, DNVR Lending highlights the importance of understanding the capital gains exclusion. The IRS allows a significant exclusion on the capital gains from the sale of a primary residence, provided certain criteria are met. Being aware of these conditions and planning accordingly can help you minimize your tax liability when selling your home.
Conclusion:
Owning a home comes with various tax benefits, and DNVR Lending is committed to helping homeowners navigate the complexities of tax season. By understanding and utilizing these tax tips, you can make informed decisions that maximize your savings and ensure a smooth tax-filing process. Whether you're a first-time homeowner or a seasoned property owner, DNVR Lending is here to support you in making the most of the tax advantages linked to homeownership.
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