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Homeowners, Save Money on Your Taxes!

It’s tax season which means you’re probably looking for ways to save money on your taxes! As a homeowner there are several deductions that can help ease the pain of what you owe the government, so let’s go over some of them.

 

Mortgage Interest Deduction:

If you bought a home or refinanced your home, you’ve spent a lot paying off the mortgage interest. Deduct it! You need to file form 1040 and itemize the deductions, only if they’re greater than the standard deduction. How much you can deduct will depend on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds.  Form 1098 that you got from your lender will explain exactly how much you can deduct and it will serve as proof in case you get audited by the IRS. Another important thing to know about this deduction is that you can get it for your mortgage, second mortgage, line of credit on your home, or home equity loan. To learn the details, click here.

 

Real Estate Tax Deduction:

It seems odd and is sometimes forgotten but you can actually deduct the local and state property taxes you’ve paid from you federal income tax. You can claim them on form 1040 as an itemized deduction. If you pay these taxes directly, you’ll need to locate the bills and record the amount. If you pay these taxes out of an escrow account, the information you need can be found on form 1090.

 

Points:

Points are essentially prepaid interest on your mortgage, line of credit, or home equity loan. They can also be called loan origination fees, maximum loan discount, loan discount, or discount points. One point is equal to one percent of the loan. Points can actually save you money on your loan over time and you can deduct them from your taxes. How much can you deduct and when? This chart will help you determine whether you can fully deduct your points this year or if you need to deduct it over the life of the loan. For the full run down on how much you can deduct and when click here.

 

Mortgage Insurance Premium

If you have qualified mortgage insurance, which means it was provided by Veterans Affairs, Federal Housing Administration, Rural Housing Services, or private mortgage insuranceyou can deduct your premium on your taxes. There are of course limits on your deductions based on your income level, this information can be found here and instructions on how to calculate the deduction amount are on form 1040.

 

We hope these tax tips help you save this year! If you have any other tips for saving on your taxes this season, let us know in the comments!

Get Over Your Stage Fright & Sell Your Home!

If you’ve ever bought a home or sold a home you know that the appearance of that home can be a deal breaker. I don’t just mean the cleanliness of the house or the landscaping; I’m talking about the styling of your home. You probably love your décor, after all you’re the one who chose it, however your color/furniture/accessory choices may not accentuate the room in the right way.

 

WHY?

Most people lack the vision to see potential in a room and home. If you have a large living room but the sofas are over sized, it will make the room look small and uninviting. That mantle full of knick knacks makes the room look cluttered, those flower drapes make the room look dated, and the closet stuffed full with junk makes your home look like it lacks storage space.  You want your home to look big, clean, and inviting so people are enticed to want to make it their own.

 

HOW?

  1. First thing is first, walk your home from the point of view of a potential buyer. You probably don’t notice the pile of mail on the coffee table or dying plant on your mantle because they have become the background clutter of your everyday life. Take a pad of paper and pen and enter your house as if you were seeing it for the first time. Make a point to notice all the details and write down problem areas – be it repairs or styling. If someone is going to spend a large amount of money purchasing your home, what are they going to notice?
  2. De-clutter: Now that you’ve noticed the desk’s overflowing piles of paper, the bookcase is overrun with figurines, and shoes are strewn all over the closet clean it up! You can probably get rid of most of that paper and put the rest in folders in the drawer. You do not need shelves full of figurines so pack them in box. As for your closet, donate the clothes you haven’t worn in over a year and devise a better storage system for your shoes, like this one.
  3. Paint: Most people don’t want to worry about repainting your daughter’s hot pink bedroom because that’s added work and expense. Do them the favor and paint your walls a neutral tone, like white or beige. While I am in love with my lime green kitchen, that’s a personal preference that most people aren’t going to warm up to! So if I were to sell my home, I’d paint my kitchen a neutral earth tone like white, beige, or gray. You don’t want to paint everything white and make your home look like a hospital, so add accent wall colorsin another neutral tone. It’s amazing how a simple coat of paint can transform the look and feel of a room, so choose wisely.
    1. Accent Colors: Since your walls are now very simple, try livening up the room with your accessories. For example, if your living room is tan with brown couches, entertainment center, and coffee table add color with an area rug, table décor, and throw pillows. Brown and tan are colors that will match with an array of colors such as green, pink, red, blue, yellow, and orange (pretty much everything!) Check out our Pinterest board for color inspiration.
  4. Furniture: If you’ve already moved out and are trying to show a vacant home, it will take much longer. Give people some furniture so they can visualize how they’ll live in that space. If your furniture is bulky or old, swap it out for something new and chic.

 

The reason you are staging your home is to make the space look large, clean, and like you want to live in it! If you still need help solving some of your staging problems check out AOL Real Estate’s solutions!

 

Do you have any must do staging tips? Let us know in the comment section!