Thursday, December 8, 2016 / by Tom Curtin
Can you believe it’s almost the end of the year? 2016 is flying by…and it's time to start prepping for tax time!
I wanted to share a few quick tips that will help as you are preparing/filing your tax return:
- Don’t forget your mortgage interest deduction: This one is a no brainer, but I can’t tell you how many people forget it. You can deduct 100% of the interest portion of your 2016 mortgage payments when you file your return.
- Deduct your property tax: Property taxes paid on both primary residences and vacation homes are fully deductible.
- Closing costs: If you bought a home in 2016, you can claim the “origination fees” on your loan as being tax deductible.
- The capital gains exclusion: If you own a home that has been your primary residence for more than two years, and you sold it in 2016, you qualify for this exclusion. When you sell a home, up to $500,000 for married couples ($250,000 if you’re single), your profits are NOT taxable.
It should go without saying that if you’ve spoken to a CPA recently, their advice goes a lot further than mine. That being said, I wouldn’t feel right if I didn’t pass along a few of these often-overlooked real estate specific tax deductions.