purchased your home, you can get back up to between 10% - 50% of the interest you pay as a tax credit. The program is administered by local authorities and can vary according to the state in which you live. To qualify for this tax credit, you’ll need an MCC issued by the local government, which your loan officer may or may not know how to do. • Home improvements. Improving your home will not only add to its livability and comfort, but it may also earn you tax deductions in multiple ways. You can use a home improvement loan to finance the cost of improvements on your primary or secondary home, which will then likely qualify you for mortgage interest deductions subject to limitations. Be sure to keep track of home improvement costs and check with your tax professional how much of the interest, if any, may be able to be deducted from your income. When you sell the property, if the selling price of your home is more than what you spent to procure it, the extra amount will be considered taxable income. You may also be able to add the improvement cost to the value of your property to reduce the amount of this taxable income. This can help you save money in taxes following the sale. • Home office deduction. If you are self-employed and work from home, the amount of space in your home that’s dedicated to business activities may be tax- deductible. This deduction will include loan interest, insurance payments, utilities, repairs, and more. However, with the TCJA going into effect for 2018 - 2025, people who are not filing as self-employed are ineligible for the deduction. There are other specific guidelines for
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