Owning a home is a dream for everyone. There are many ways you can use your home for tax deductions. As you file your tax return this year, make sure you are filling out the correct forms and checking the correct boxes. Errors in filing are common and can cost you big time!

Mortgage interest tax deduction

Mortgage tax deduction is the most common tax deduction for homeowners. It allows you to reduce your taxable income by the amount of money you’ve paid in mortgage interest during the year up to the cost of the first $750,000 of the mortgage.

Tracking home improvement expenses

While home repairs and improvements can both be counted as money spent to make your home better for you, they aren’t the same thing in the IRS view. Generally, home improvements that increase your home’s value aren’t deductible unless those home improvements were used to improve the home for someone with a disability. In either situation it is always best to keep home office improvement receipts and other home-related documents as you go.

Filing energy rebates.

If you obtained energy-efficient improvements or upgrades to your home, you could qualify for a tax credit. However, it is best to first make sure that these improvements meet guidelines established by the U.S. Department of Energy before committing to the upgrades. Also, some credits cannot exceed a certain amount.

Interest on a home equity loan

If you have a home equity loan and use the money to buy, build, or improve your home then that interest is deductible. If you use that money to buy a car, pay down credit, or something non home related then you cannot deduct that interest.

If you are facing financial problems and none of the above tips or tricks above will benefit you, a property tax loan from Ovation Lending can help ease the financial burden of property taxes. We are the leader in property tax loans. Our experienced team of Licensed Loan Officers will help you navigate your property tax issues. Call us at 877-419-7392 to get in touch with our experts who can guide you in the process.