Did you own or purchase new homes in Hagerstown MD in 2013? Along with the joys of DIY house projects, the freedom you never have as a renter, and pride of ownership that comes with owning your own home, there’s one more perk you’ll appreciate this time of year: tax deductions. As a homeowner, you can deduct many home-related expenses that equal big savings. Take a look at what you can and can’t deduct to get the most tax advantages on your property.

What is eligible for a deduction and/or credit?

•    Property taxes, including taxes you may have reimbursed the seller for

•    Mortgage interest on your primary and secondary residences

•    Interest on up to $100,000 borrowed on a home equity loan or home equity line of credit

•    Points paid when you purchased houses for sale in Maryland or those the seller paid for you

•    Premiums paid for Private Mortgage Insurance (PMI) issued after 2006

•    Home improvements required for medical care

•    Energy-efficient upgrades like insulation, windows and doors, solar electric systems, high-efficiency heating and air conditioning systems, hot water heaters and more

•    Actual expenses of home office used for business purposes exclusively and on a regular basis (new for the 2013 tax year)

What is not eligible for a deduction and/or credit?

•    Home improvements or repairs not required for medical care

•    Appraisal fees

•    Closing costs on new homes and principal payments on your mortgage

•    Depreciation of your home

•    Local assessments to increase the value of your neighborhood

•    Homeowners’ association fees

•    Home insurance

How much can I save?

 

This depends on a number of factors, including your filing status, standard deduction amount, itemized deductions and taxable income. Coldwell Banker Innovations recommends consulting a professional for financial advice on your taxes, investments and other income-related matters.