The largest tax deduction most people can claim on any type of mortgage is on the interest paid on the loan.
In most cases, mortgage refinance interest is tax-deductible, which means you can take it off your taxable income for that tax year.
But there are rules that apply.
Rules for Making Tax Deductions on Mortgage Interest
First of all, the loan must be on either your primary residence or a secondary residence. If you are taking the deduction on a second residence, this can’t be a rental property.… Read the rest
Freelancers, contract employees, and business owners know that taxes can be a financial make or break. Tax season is normally a period filled with dread as you try to justify costs and scratch together last-minute work to prepare for the worst.
Thankfully, there are many ways you can save money if you are self-employed.
Of course, you can only make the most of these self-employed tax deductions if you know what they are. You’ve probably spent most of the year stressing about the taxman taking your hard-earned money, but the truth is that you’ve earned the right to claim the self-employed tax deductions that come with having your own business.… Read the rest
Do you want to reduce your tax bill this year? You can maximize your tax savings by checking to see if you’re eligible to claim any of the new expanded tax credits.
The difference between a tax credit and a deduction is a deduction reduces your taxable income, whereas credits reduce the amount of tax you pay directly. Refundable credits are even better because they can reduce your tax bill even if the credit is worth more than you owe. Non-refundable credits are only valid up to the amount you owe.… Read the rest
What is Tax Deductible for Homeowners?
Every new homeowner or buyer wants to know about the tax deductions they can claim. Did you know that your home offers a range of tax benefits?
This is the guide you need to read because the new Tax Cuts and Jobs Act (TCJA) has changed some of the tax breaks you have as a new homebuyer or long-time homeowner.
1. Interest on Your Mortgage
Most people don’t realize that within certain limits, you can deduct your mortgage interest.… Read the rest