If death and taxes are the two things you can always count on in life, there probably should be a third: the bucketful of tax breaks Uncle Sam offers every year to encourage more Americans to buy a home. If you own a home and are looking to save on your taxes, or if you’re considering buying a home in 2017 and trying to see if you can afford it, here are five valuable deductions that you may be able to claim if you’re a homeowner. Read more …
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’ll now have an added dimension to your taxes.
The good news is that you can deduct many home-related expenses. These advantages apply to any type of residence–mobile home, single-family, townhouse, condominium or cooperative apartment.
The bad news is that to take full tax advantage of your home, you need to itemize your deductions on Schedule A. You’re not living on “EZ” Street anymore; you’ve moved to the 1040 long form.
How is property value determined? The county assessor must determine the fair market value of property using one or more of three generally accepted appraisal methods: The Market approach, Cost Approach, or Income Approach. Further detailed explanations on these methods can be found in ‘A Homeowner’s Guide to Property Taxes’. The frequency of changes in value to your property depends on your county’s revaluation cycle.
How do you appeal your property assessment? Appeals of assessed valuation are made to the county board of equalization. You can contact your county assessor or board of equalization for forms and information regarding the deadline to file your appeal.
Additional information regarding property valuation appeals is available by clicking here.
If you sold your main home in 2010, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). If you can exclude all the gain, you do not need to report the sale on your tax return. Do you qualify? Read more …