Buying a West Knoxville home is a huge investment. There is no doubting that home ownership can come with its share of costs. Still, owning a home comes with many great benefits. One of the many benefits of owning a home is that many tax breaks that come with home ownership.
Here are a few of the common tax breaks that comes with owning a West Knoxville home:
City and county property taxes can be deducted, so long as the taxes are based on the assessed value of the home. Properties taxes can be deducted on taxes regardless of whether you pay them out of an escrow account or if you pay the tax bill on your own.
Mortgage interest can be deducted. Deducting mortgage interest is a common tax write off, especially in the beginning of loan payments. Be sure to keep the 1098 Form from your lender, it explains how much you can deduct from your taxes.
Making your home energy efficient. The installation of energy efficient doors, windows and skylights can be written off in your yearly taxes, so long as they meet the Energy Star criteria.
Mortgage insurance premiums. If your lender requires you to carry mortgage insurance on your loan, you may be eligible to deduct it from your taxes. If you file separately your adjusted gross income must be less than $50,000 and if you file jointly you adjusted gross income must be less than $100,000, then you may be able to deduct the full amount that you paid.
Discount points. In the first year after purchasing your West Knoxville home, you can deduct any discount point that were used to obtain your mortgage, so long as the home is your primary residence.
For more information about tax deductions for West Knoxville homeowners visit the IRS website or talk to a tax professional.
Are you thinking about buying a West Knoxville home? Have you thought of the many great tax breaks? If you are one of the many people thinking about buying a West Knoxville home this summer, please let me know if there is any way that I can assist you. You can give me a call at 865-696-9002 or send an email to [email protected].