Only tax accountants get excited about this stuff, but there are a few reasons to smile this year as you prepare your 2017 tax returns. Are you a homeowner? You may be eligible for these important tax deductions:
If your home has a mortgage, your lender will send a 1098 Form that will list the amount paid for property taxes. Otherwise, you can reference the property tax bill you received last fall.
If you bought your home in 2017, be sure to deduct any taxes for which you may have reimbursed the seller. These are taxes the seller had already paid before you took ownership. You won’t get a 1098 report listing these taxes. Instead, that amount will be shown on the settlement statement you received at closing.
Home Improvements Required for Medical Care
If you or a family member suffered a disability or illness in 2017 and you made home improvements to accommodate it, the amount of those improvements could be tax deductible. This includes items like wheelchair-accessible ramps, bathroom modifications, etc.
Mortgage Interest Payments.
Payments made on mortgage interest may also be deductible. This is true concerning your primary residence as well as a second home. Although there are limits on mortgage interest deductions, they affect relatively few tax payers.
Did you take out a home equity loan or line of credit? The interest on up to $100,000 of that loan is deductible, regardless of the reason for the loan.
Private Mortgage Insurance Premiums
The Private Mortgage Insurance (PMI) deduction was set to expire at the end of 2016. However, the new tax laws passed at the beginning of 2018 reinstated it retroactively for 2017. There are predetermined brackets that limit who can take the mortgage insurance deduction, though, so be sure to review applicable codes. Keep in mind that, because the deduction was set to expire in 2016 and was not renewed until 2018, some lenders did not report PMI on their annual 1098 forms. If your mortgage insurance premium is NOT included on your 1098, contact your lender and request the amount in writing.
Peggy Slappey Properties, Inc. is a Metro Atlanta real estate brokerage celebrating 35 years of experience in real estate sales and marketing. From new home construction to resales, we can help you find the home of your dreams. To see our current listings, visit www.psponline.com and call us for expert advice at 770-271-5555. Keep up to date with the latest PSP events and offers by checking in on Facebook at https://www.facebook.com/peggyslappeyproperties and on Twitter at https://twitter.com/psponline.