The end of tax season is quickly approaching. April 15th marks the date that all US citizens should have their taxes filed for the previous year. It’s a great time, especially when the tax returns arrive. But what about homeowners? Owning a home can change your tax filings up quite a bit. So, if you’re a homeowner, what should you know for filing your taxes?
Receipts are important
This rings true for non home-related purchases as well, but if you’re making any purchases for your home that can decorate it or increase its appeal, you’ll want to hold on to those receipts. Keeping receipts can be useful come tax time; they could be considered deductions, particularly when you’re going to sell your home. This all varies by state and city, but still, it’s a good principle to live life by.
Keep an eye out for new taxes
With last year’s brand new tax system in place, your homeowner’s taxes could change drastically. You may or may not need to adjust for new taxes coming your way. Don’t assume you have a hold on your current taxes. Be safe and take a look at what you need to pay. A great example can be found in Cape Cod: a new tax on vacation property could result in 12 to 26 percent cost increases. The point is, be wary of all upcoming taxes, there’s a new playing field.
Look into tax abatements
Tax abatements are one of the greatest, and most underutilized tools in the industry. As is the case with most tax incentives, you’ll need to check with your state and city’s specific laws and see exactly what your area will allow. For example, Portland, Oregon features a program in which property owners receive a tax exemption for specific structural improvements…for 10 years! That’s a large amount of time to be exempt from taxes. Look into similar programs in your area. It could wind up saving you a lot of money.
Tax Day is almost here. If you haven’t filed your taxes already, there’s not much time left! Jump into action as soon as possible. Take these tips and bring them to your accountants and financial advisors and see what you can do to alleviate those tax bills.