5 Tax Breaks for Homeowners
It's never too early in the year to start thinking about filing your income taxes. If you own a home at the Lake of the Ozarks, there are a few tax deductions that you may qualify for. My Lake Ozark real estate office wants to make sure that you have the chance to utilize these possible tax breaks. Tax season officially began on January 19, 2016, and this year there is a new deadline of April 18, 2016. Washington D.C. will be celebrating Emancipation Day on the regular deadline date of Friday, April 15, which causes this year's deadline to be shifted to the following Monday. In addition to those extra 3 days, you may qualify for other tax breaks.
1. Mortgage Interest
Unless it was over one million dollars, all of the interest that you paid over the year on your mortgage is deductible. That same interest is even deductible on property like an RV or a boat, provided that it has sleeping, cooking, and bathroom facilities. The IRS even accepts the interest on a home improvement loan up to $100,000 as fully deductible. If you received a home equity loan, the interest paid on that is tax deductible too, except for any part of the loan that is worth more than the property itself.
2. Property Taxes
For as long as you own your home, property taxes will be an annual deduction for you. If you only owned the house for part of the tax year, the property taxes are divided between you and the previous owner, and the portion that you paid is deductible. 
3. Profit From a Home Sale
If you sold your home and made a profit from it, much of that profit may be tax-free. Any sales gain of up to $250,000 (or $500,000 for married couples filing jointly) is tax-free as long as you both owned and lived in the property for at least 2 of the 5 years prior to its sale, and also if you haven't claimed this exemption on another home in the last two years.
4. Points
Occasionally, points can be paid on a home loan to get a better rate. A point is a fee equal to 1% of the loan amount. You may deduct points in the year that they were paid if they went toward building or purchasing your main home. If the points were for a second or vacation home, those points must be amortized over the life of the loan. If the points you paid were for a refinanced loan, these must be deducted over the life of the loan too. With home equity loans or lines of credit, as long as the money is used for home improvement on the residence that the loan is for, the deduction can be taken in the year the points were paid.
5. Home Improvements
If you made changes to your home because of medical care for yourself, a spouse, or a dependent, then these home improvements are tax deductible as a medical expense. This is the only type of home improvement that qualifies. 
Owning a house has many wonderful benefits, and these tax breaks are a few of them. If you are ready to own your own home, give me a call and let's talk. Living at the Lake of the Ozarks is a wonderful choice that brings joy to all of the residents here. There is a perfect house near the water waiting for you! Let me help you find it.
Here for all of your real estate needs at Lake of the Ozarks!
573-365-1555
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