Owning a home is always expensive, no matter where someone lives. In fact, the average cost of a home is more than $150,000, and, in order to pay it off, homeowners will have to make costly monthly mortgage payments. Fortunately, there are certain mortgage insurance premium deductions and dedications for home insurance that people can use in order to offset the cost of owning a home. In fact, there are lots of deductions that people can use to cut down on their cost of living.
1. Moving Expenses
Many individuals will want to buy a new house because they just landed a great job in a new city. If they move more than 50 miles, they might be able to deduct some of those moving expenses. The IRS website lists eligible expenses in an easy to read .pdf for anybody who thinks they might be able to lower their taxes.
2. Installing Efficient Appliances
New items, especially those that have Energy Star ratings, can allow homeowners to receive a tax deduction. There are lots of products that meet that criteria, so individuals might want to check the energystar.gov before making a purchase to see if the new item they hope to buy is eligible for deductions.
3. Home Improvements
Projects like plumbing, wiring, new roofing, and even installing air conditioning or heating units, according to the IRS, could all result in tax deductions. While their costs can not necessarily be deducted, the cost of material and labor can be added to the basis of a home, possibly resulting in taxes owed in the future.
4. Working at Home
In some cases, individuals who work at home will be able to deduct at least a portion of the mortgage that they pay for use. Being able to work at home in pajamas is a relaxing way to get projects done. However, it is even nicer if it allows individuals to take better advantage of mortgage insurance deduction to lower their taxes every April.
These four tips are just a few of the many that people can use in order to reduce the cost of owning a home. But even after a little bit of research about dedications for home insurance, it can still be a good idea to get some professional advice. Tax professionals will understand the intricacies of taxes and deductions, and provide lots of helpful information and advice.