Tax Deductions That Benefit Homeowners And Recent Buyers

Homeowners can save a few bucks during tax season with two energy-related breaks. The nonbusiness energy property credit provides $500 for energy-efficient home improvements, and the residential energy efficient property credit is applicable for solar and wind installations.

Redfin found eight tax breaks for homeowners, including the mortgage interest deduction, a deduction for mortgage insurance premiums, and deductions for real estate taxes. Tips and tricks can also save money when it comes to home offices, moving expenses, and recent inheritances.

Capital Gains Exclusion: If you’ve owned and lived in your principal residence for at least two of the last five years, then the exclusion for gain on its sale remains available. The exclusion is up to $250,000 of gain for a single taxpayer and up to $500,000 of gain for joint filers, said Mark Luscombe, principal analyst at Wolters Kluwer Tax & Accounting.

Read more