So, you’re buying your first home! Congratulations are
definitely in order as you take this huge step! In the midst of all the
excitement and celebration over your new home, however, make sure that you
think about how this decision will affect your taxes.
Mortgage Interest Deductions
One thing to remember as you start your journey toward being
a homeowner is that the interest you pay on your mortgage is fully tax
deductible. Obviously, you don’t want to miss out on this nice break on your
taxes, so be sure to accurately calculate the interest portion of your payment
to make sure you get your full tax break.
Deductions for Charitable Giving
You might not think that charitable giving has a lot to do
with home owning, but, the truth is, many people only become eligible for
itemized deductions, such as the deduction from charitable giving, after they
become homeowners. This is typically due to their mortgage interest, real
estate taxes, and other things related to home ownership. So, if you’ve been
giving for a long time, it’s smart to check and see if you’re now eligible to
benefit from your giving, and if not, it may be time to start!
Closing Statement Savings
As a final word of wisdom, be sure you save your closing
statement! You might find that some of the expenses you’ve incurred, which are
listed on your statement, are tax deductible, which can save you more money
come tax time. If you’re not sure what, if anything, is tax deductible, just
ask your accountant for help!
In fact, a good accountant can help you to navigate all of
the changes that come with home ownership and to help you to use them to your
benefit, so that you get not just a home, but some nice financial rewards and
incentives as well!