Are you missing out on real estate tax breaks? As a homeowner, you can deduct much more than your mortgage interest at tax time. Use our list to ensure you’re up to date on Charlotte area homeowner tax breaks and minimize your tax bill.
There are three primary tax breaks that expired at the end of 2016:
– PMI – 2016 is the last year to write off PMI insurance.
– Mortgage Debt Forgiveness – 2016 marks the end of not having to claim forgiven debt as income.
– Certain “Going Green” write-offs.
While some of these expired in 2016, homeowners can still claim a few energy efficiency write-offs on future tax returns, which we’ve included on our list below.
expenditures will remain in effect through 12/31/2019 for North and South Carolina.
Exclusion of Gain on Sale of your Home. Form 523 (2016) shows a list of improvements that can be deducted if they were done specifically to sell your home. There are specific rules and guidelines for each year, consult your tax advisor before making any improvements on the list.
Tax Free IRA Withdrawal. First-time buyers can waive the 10% tax penalty on early distributions from IRA’s when the funds are used for a down payment toward a home purchase.
Historic Preservation Tax Credits (North Carolina). New homeowner tax credits for NC Historic Preservation tax credits are effective January 1, 2016, ends January 1, 2020.
Home Equity Loan Interest In addition to the standard mortgage interest deduction, homeowners may be eligible to deduct some of the interest paid on a home equity loan or line of credit.
Home office tax deduction. In 2015, com reported that 37% of US workers telecommute. If you fall into this category, make sure you are taking advantage of home office deductions.
In Mecklenburg County, there are a variety of real estate tax breaks available for low-income families, disabled veterans, the elderly, and permanently disabled. If you fall into one of those categories, contact the county for assistance. If you live outside of Mecklenburg County, most areas offer a similar deduction. Get in touch with your local officials to learn if you qualify.
Tax professionals can help you stay up to date on the most current real estate tax laws. If you haven’t filed your taxes yet and you don’t have a tax professional on your side, Angie’s List offers a free subscription for you to find and compare tax professionals in your area.