taking advantage of this deduction, so check with your professional tax preparer before filing. • Home energy tax credits. The IRS rewards homeowners who make efforts to create eco-friendly homes. Solar is particularly lucrative, as the installation of a solar power system or solar hot water system earned you a 30% federal tax credit until the end of 2019. After 2019, the credit falls by a few percentage points each year until 2022, when the credit is scheduled to expire. Unfortunately, a large amount of other federal energy efficiency credits expired in 2016, but that doesn’t mean you should give up on being eco-friendly: there are still many state and local tax credits, incentives, and rebates on offer for upgrading your home’s energy efficiency. • Real Estate Taxes. You may be able to deduct the amount of real estate taxes you pay up to a certain amount. Keep in mind that Homeowners association dues as explained in a previous chapter are not tax-deductible. Tax laws are always being changed, modified, or even eliminated. Please make sure you check with your tax and legal advisors as to what programs and laws you qualify for at the time you purchase your home and again when it is time to file your tax returns.
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