Tax season is upon us! Here's a list of what you'll need to maximize your home owner tax breaks.
Form 1098: This should come in the mail from your lender and will highlight all of the interest you've paid over the year that is tax deductible.
Total property taxes paid for the year: If this is included with your monthly payment through your lender it should also be including on form 1098. If you purchased your home this year you'll want to also include your closing statement to provide any pre paid taxes. (If you bought a home with me in 2022 I'm always happy to send you a new copy of your closing statement so that you don't have to dig yours up.)
Total HELOC Interest paid: If you currently have a home equity line of credit (HELOC) that was used to pay for home improvements then you can typically write off the interest paid for this as well.
Home office expenses: If you currently have a dedicated office space in your home that you use for work you may be eligible for additional write offs including the office space and a portion of your internet and utility bills.
Invoices for energy efficient upgrades: There are often energy credits for home upgrades such as solar panels, new windows and new HVAC systems. Gather receipts and invoices to check for those credits.
IRA/401K Statement: If you used funds from your IRA or 401K accounts to purchase a home in 2022 you will typically be able to waive the 10% penalty tax.
Total rental property expenses: If you own a rental property there's a laundry list of write offs that you are likely eligible for. Make sure to connect with your accountant to discuss a full list. Examples include: mileage or travel expenses to and from the rental property, any repairs or new purchases for the rental such as, a fence, water heater, refrigerator etc., paid landscaping and any property management costs.
While I have lots of experience preparing for filing personal and business taxes please note that I am not a certified accountant and cannot offer any professional tax advice. However, if you need a CPA referral please don't hesitate to ask!
Latest rates as of Feb 2023:
5.1% for a VA loan, 5.8% for a conventional loan and 5.6% for an FHA loan. *Rates change daily and are subject to each individual lender/bank and borrowers credit profile. If you need a trusted lender recommendation please don't hesitate to ask.
Carly
Experts Forecast a Turnaround
in the Housing Market in 2023!
The housing market has gone through a lot of change recently, and much of that was a result of how quicklymortgage ratesrose last year.
Now, as we move through 2023, there are signs things are finally going to turn around. Homeprice appreciationis slowing from the recent frenzy, mortgage rates arecoming down, inflation is easing, and overall market activity is starting topick up. All of that’s great news for the housing market this year. Here’s what experts are saying.
“The current state of the housing market is that it is certainly in transition.”
“. . .it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”
If you’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Let’s connect to talk about the latest trends in our area.
On average, nationwide, home prices appreciated by 288.7% over the last 32 years. That means homeowners grow their net worth significantly in the long term.
Homeownership winsover time. Let’s connect so you can start your homebuying journey today.
