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Tax Write-Offs on Home Sales Explained by Your Westminster Real Estate Agent

July 19, 2017

Did you realize that you can take advantage of purchasing a home on your taxes? This is a great way to help you maximize the investment of a new home. In addition, once you own your home, you will continue to be able to take advantage of owning a home each year when tax season rolls around. So whether you are hoping to be a first-time homebuyer soon, or have been one for decades, it’s never the wrong time to brush up on your knowledge--especially when it comes to helping put money back into your pocket. Learn more from a Westminster real estate agent about what tax write-offs are, different types of real estate-related deductions, and how moving for a job can help.

Intro to Tax Write-Offs

Each year as an American citizen, you are responsible for paying for your taxes. This should be no surprise! For many, the full amount is taken out through a full time employer. Depending on any side work or other financial status, or if you are self-employed, you may owe. Regardless, getting money back or having to pay less is always an advantage. The more you can write-off or deduct from your taxable income, the more helpful it can be on an overall return or the amount you may owe. Everyone is entitled to a standard deduction, but you may have other situations where you can write off for different factors. These are for itemized deductions. This can include interest on loans, donations to charity and mortgages.

Tax-Write Offs for Real Estate

Homeowners can take advantage of various deductions to take off thanks to their home or recent purchase of a home. The first deduction you can take advantage of is mortgage interest. Next are property taxes. While not every aspect of your property taxes are deductible, some parts are. Every little bit helps! Next, if you install energy efficient appliances in your home or make energy efficient upgrades, those will also help you. In general, if you work on a home renovation project, there are also benefits there for you as well. Be sure to read the 10 homeowner tax breaks you should be taking advantage of from Market Watch to ensure you make the most of your investment.

Moving for a Job and Relation to Real Estate

Did you or will you have to move to a different city for work? This is also an instance to take advantage of on your taxes. It can be tricky, but worth it if you have to move away. In order to qualify, you must have to meet two factors. First, you must move to a location that’s over 50 miles away in relation from where your current home is to your employer. So for instance, if you lived 10 miles away from your job, you would have to move to a location that would be a 60 mile commute. Next is time. In order to qualify for tax benefits, you must work full-time in the area for at least 39 weeks. If you meet these two requirements, you can write-off your moving expenses from your taxes.

Whether you are moving for work or just in the market for a new home, The Giving Back Group will help you find the best home for you. In addition, they will also take 20 percent of their commission earnings and donate it to charity. This is a great consideration as you are preparing your search for Denver real estate. Let us know how we can help you by calling us today at 303-881-4881.