For first-time buyers, the additional costs of homeownership are too great and daunting.Depending on the type of residence, new owners may also be paying for costs such as landscaping, pest control, pool care, plumbing repairs, electrical work, condominium association fees, special assessments, and several other costs. 

The good news is that during tax season, homeowners can benefit from a number of tax benefits and credits that aren't available to renters. Consult a tax expert to determine your eligibility for these deductions.

 Private Mortgage Insurance 

PMI is the premium you pay every month until your equity equals 20 percent of your home’s value. Luckily, these premiums can be deducted from your income. 

Mortgage Interest 

If you paid more than $600 dollars in mortgage interest during the tax year, every penny you paid is deductible—and that includes interest on a second mortgage. 

Local Real Estate Taxes 

Some taxpayers overlook the fact that homeowners can deduct local, state and even foreign real estate taxes on their federal returns. Lower-income homeowners may also get special property tax benefits from their state or municipality, so look into further breaks specific to your community. 

Losses From Weather, Fire or Theft 

While nobody wants a tree to fall on their house or burglars to make off with their flat screen, theIRS grants a break to any property or casualty loss that is more than 10 percent of your gross income and is not reimbursed by your insurance. 

Moving Expenses 

If you moved 50 miles or more for a new job during the tax year, you can deduct your moving expenses. (Note, that if you started the new job more than a year before purchasing the newhome, the moving expenses are not tax deductible.) 

Selling Costs 

If you sold a home during the tax year, the commission paid to a real estate agent is tax deductible, as are any legal fees and closing costs. Just like home-improvement costs reduce your cost basis, so do your selling costs.

Like this update? As your local real estate professional, I can provide more great tips like this and answer any real estate information questions you may have. Contact me today!

JUAN MESTRE REALTOR ASSOCIATE 

                                                                                   RAISING THE BAR FOR REAL ESTATE SERVICES

CONSIDER: Since I'm not a lawyer but your neighbor Realtor Associate, you should consult an attorney and your CPA before making any decisions.

 If you wish to find your Home or to start your journey towards Home Ownership, Let’s start working together reach me at 305-776-5677 or register at www.juanmestre.com or email mestre.j@ewm.com. 

Sourced and digested from several locations including but not limited to: RisMedia for BHHS.com/blog, EWM Realty & my knowledge