Congratulations, you’ve just taken another step up the American-dream ladder and are a homeowner. Along with the joy of painting, plumbing and yard work, you now have some new tax considerations.
The good news is you can deduct many home-related expenses. These tax breaks are available for any abode—mobile home, single-family residence, town house, condominium or cooperative apartment.
The bad news is, to take full tax advantage of your home, your taxes will likely get more complicated. In most cases, homeowners itemize. That means you’re not living on “EZ” Street anymore; you’ve moved to Form 1040 and Schedule A, where you’ll have to detail your tax deductible expenses.
For many homeowners, the effort of itemizing is well worth it at tax time. Some, however, might find claiming the standard deduction remains their best move.
If you do find that itemizing is best for your tax situation, here’s a look at homeowner expenses you can deduct on Schedule A, ones you can’t and some tips to get the most tax advantages out of your new property-owning status. Read more here, and also by clicking on the image above.