There is nothing equivalent to the joy of owning your own place. You can paint the wall whatever color you like, and you can nail whatever you want on it. That being said, there are certain financial responsibilities that come with this as well – responsibilities that happen to include taxes.
When you are preparing your taxes, you will find that you face the question of whether you should itemize. Mortgage interest is deductable. Therefore this can make for a hefty savings for you. You might want to think twice before you write off eth standard deduction. That being said keep in mind that you can only write off expenses after you have successfully reached 2% of your AGI.
Deductible Property Taxes
Did you know that as complex filing tax returns can be, not many people notice that the IRS lets you deduct on your tax return. On your federal tax return it is very much possible to deduct local property and state taxes.
Damages To Property
The IRS lets you deduct ‘casualty losses’ if something happened that caused damage to your property. Remember to itemize your taxes though, otherwise you will not be able to claim this.
The IRS will view all cancellation of debt as income, if you plan on short selling your property. This rule does not apply to foreclosures. In foreclosures if you took care of all the mortgages then you get to be responsible for cancellation of debt as well.
If you are planning on selling your house then you can write off the expenses that you incurred while you were advertising it. If you have to go through buying title insurance then it would be best if you went on and claimed that too.
When you sell your property, you may have to incur the hassle and cost of moving. You cannot deduct these. But if you happen to be moving because of a new job then you can write off these moving expenses from the perspective of getting a new job.
It is very important for you to keep track of your expenses. Keeping track means saving all bills, receipts, and any other paperwork that would pass as proof of your purchase. A neat idea would be to get a scanner. A scanner will let you keep a digital copy and a hard copy of everything.
As a homeowner if you have a home office as well then you are free to claim deductions on all the expenses that you incur while you are at it. Like internet bills, the equipment that you bought for working etc.
It is recommended that you get in touch with a good accountant in Orlando to go through your finances and give you the best advice towards any unique aspects of your situation.
If you need more information about our Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.