Tax day is tomorrow!! Have you filed your 2011 return yet? For some, it's the most dreaded day of the year. There is some good news though for all of you homeowners out there. Here are some last-minute considerations as it relates to the deductions/tax credits for your home.
1-Have you replaced any major items in your home? The 2011 federal energy tax credits offer a $500.00 tax credit for various upgrades. Windows, roofs, water heaters, storm windows/doors, and insulation are just a few on the list that qualify. The tax credit may seem small, however, credits are better than a deduction and every little bit helps in the overall picture.
2-Do you work from home? More and more people today are working from home and are missing out on several items that could be deducted. Anything from your home phone to the space that you use for your office may be deductible.
3-The best part of owning a home at tax time is being able to deduct your Mortgage Interest. Typically your first mortgage isn't the only interest you can deduct. Many times you can deduct the interest off your Home Equity Loan or Line of Credit (HELOC.)
4-Have you ever considered "Greening up your Home??" There are several generous tax credits for installing solar panels, geothermal heat pumps, and small wind energy systems. The initial investment could be high, but the overall long-term savings on your energy costs might be worth it.
As always, consult your Tax Adviser for advice specific to your situation.