Mark Slade - FirstTimeBuyer

for this tax credit, you will need aMortgage Credit Certificate issued by the local government. s Home improvements. Improving your home can not only add to its livability and comfort, it can also earn you tax deductions in multiple ways. You can use a home-improvement loan to finance the cost of improvements in your home, as these loans also qualify for mortgage interest deductions. The interest on a home-improvement loan is deductible in full, up to a sum of $100,000 in debt. Keep track of home improvement costs. When you go to sell the property, if the selling price of your home is more than you spent to procure it, the extra amount will be considered taxable. You can add the improvement cost to the value of your property to reduce the value of this taxable income by factoring in the home improvement costs. This can help you save money in taxes following the sale. s Home office deduction. If you work from home, the amount of space in your home that is dedicated towards business activities is tax-deductible. This deduction will include loan interest, insurance amount, other utilities, and repairs. However, there are certain guidelines for taking advantage of this deduction, so check with your professional tax preparer. s Home energy tax credits. The IRS rewards homeowners who make efforts to create eco-friendly homes.The Residential Energy Efficiency PropertyCredit can cover the costs that are spent towardsmaking the home more energy efficient. Homeowners can save around 20-30% of the costs incurred for installing energy efficient appliances. An important factor is that it counts as a tax credit, which means it will reduce your tax bill directly. To apply for this tax credit, youmust invest in appliances that harness energy from renewable sources. Examples of these sources are solar panels, wind turbines, fuel cells, etc. • • •


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