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Tax season is going to be upon us soon and there are many benefits waiting for homeowners:
- Mortgage Interest: This is a huge money saver and can be taken on both primary and secondary homes, as long as you itemize your return and your loan is less than one million dollars.
- Mortgage Points: Points, which are percentage based fees that a lender charges to originate a loan, are seen as a type of mortgage interest which is paid in advance. As long as you meet certain requirements, you can deduct these points in full the year they were paid.
- Property Taxes: The amount you paid in property taxes can be entered on your federal form for as long as you own the home. You can find this amount by looking at your annual statement that you just received by your lender. This must be an itemized expense.
- Home Improvements: Many homeowners took on various home improvement projects in the last year and you may have been one of those homeowners as well. Projects range from adding additional square footage, replacing the roof, etc. The money spent on these projects will help to lower your tax bill.