There are significant tax benefits for people who buy a home from Hartz Homes. Let’s look at six ways these buyers can save on taxes and put money back in their pockets.
- Deduct mortgage interest
The mortgage interest deduction can be one of the largest tax breaks available to homeowners. This deduction can be especially lucrative during the early years of your mortgage, when the majority of what you pay each month is applied to interest as opposed to your loan’s principal.
- Deduct property tax
Ahhh! Nobody likes paying property taxes. But, there’s an upside: the ability to take a larger deduction on your taxes. (One thing you’ll need to remember about this deduction is that you must claim it the year you actually make your payments.)
- Deduct points
Some borrowers pay points on their mortgage in exchange for a reduced interest rate. Points are essentially an up-front fee you give your lender when you sign your mortgage. The good thing about points is that they can work as a tax deduction, if not right away then over time. If the points you pay are in line with the industry standard, and the purpose of your mortgage is to purchase your primary home, then you’re allowed to take a full points deduction right away. Otherwise, you can still take the deduction, but you’ll need to spread it out over the life of your home loan.
- Deduct private mortgage Insurance
Buyers not putting 20% down on their home, usually have to pay PMI, or private mortgage insurance. PMI usually ends up equaling 0.5% to 1% of your home loan’s value, so if you take out a $200,000 mortgage, you can expect to pay anywhere from $1,000 to $2,000 in PMI. But while that extra expense is far from ideal, it could serve as a tax deduction if your income meets the qualifications. You can check with your tax professional to see if you qualify.
- Deduct a home office
If you work from home, the home office deduction could save you some money on your taxes. The IRS permits you to write off a portion of the expenses (such as electricity, water, and internet service) that enable you to conduct business from home. To qualify for this deduction, your home office needs to be a dedicated space reserved for business use only.
- Allows you to itemize
In order to take advantage of these deductions, you’ll need to itemize on your taxes. But, if your tax-deductible costs of homeownership are high enough, you’ll be able to forego the standard deduction in favor of being able to itemize all your deductions.
Please check out these new home communities from Hartz Homes:
Armitage Pointe of Addison, Illinois (Chicago area new home construction)
Bella Vista Townhomes of Bolingbrook, Illinois (Chicago area new home construction)
Heather Glen of New Lenox, Illinois (Chicago area new home construction)
Hibernia of New Lenox, Illinois (Chicago area new home construction)
Lago Vista of Lockport, Illinois (Chicago area new home construction)
Leigh Creek of New Lenox, Illinois (Chicago area new home construction)
Manchester Cove of Mokena, Illinois (Chicago area new home construction)
Marquis Pointe of Montgomery, Illinois (Chicago area new home construction)
Marywood Meadows of Montgomery, Illinois (Chicago area new home construction)
Nantucket Lakes of New Lenox, Illinois (Chicago area new home construction)
Oliviabrook of Oakbrook Terrace, Illinois (Chicago area new home construction)
Park West of Manteno, Illinois (Chicago area new home construction)
Playa Vista of Plainfield, Illinois (Chicago area new home construction)
Sky Harbor of New Lenox, Illinois (Chicago area new home construction)
Whisper Creek of Mokena, Illinois (Chicago area new home construction)
Hartz Homes has new home communities in:
Addison, Illinois (Chicago area new home construction)
Aurora, Illinois (Chicago area new home construction)
Bolingbrook, Illinois (Chicago area new home construction)
Lockport, Illinois (Chicago area new home construction)
New Lenox (Chicago area new home construction)
Manteno, Illinois (Chicago area new home construction)
Mokena, Illinois (Chicago area new home construction)
Montgomery, Illinois (Chicago area new home construction)
Plainfield, Illinois (Chicago area new home construction)
Oakbrook Terrace (Chicago area new home construction)