taxes after the sale.
Home office deduction. If you are self-employed and work from home, the amount of space in your home that’s dedicated toward business activities is tax deductible. This deduction will include loan interest, insurance payments, utilities, repairs, and more. However, with the Tax Cuts and Jobs Act going into effect for 2018 through 2025, people who are not filing as self-employed are ineligible for the deduction. There are other specific guidelines for taking advantage of this deduction, so check with your professional tax preparer before filing. Home energy tax credits. The IRS continues to incentivize homeowners who invest in eco-friendly home improvements. Homeowners can claim the Energy Efficient Home Improvement Credit, which applies to upgrades like exterior doors, windows, insulation, and HVAC systems. From 2023 through 2032, this credit allows for 30% of the total improvement cost annually, up to a maximum of $1,200 each year. Additionally, the Residential Clean Energy Credit covers solar, wind, geothermal power, solar water heaters, fuel cells, and battery storage, offering a 30% credit with no annual or lifetime limit until 2032. These credits, available for primary residences and second homes but not for non-residential properties, provide strong incentives for investing in energy efficiency and renewable energy.
HOW TO GAIN AN ADVANTAGE:
The bottom line is that there are many different federal, state, and local grants and home buyer programs available for buyers, both first-time buyers and repeat buyers. These programs exist to bring the dream of homeownership closer to people who might otherwise not be able to afford to buy a home. You might be closer than you think to being able to afford a home. Do your research to learn about every possible program
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