Did you know that the average person in the United States spends 25% to 35% of their working life paying taxes?! That means for every 8 hour workday, 2 of those hours are going straight to the government. Most people believe they have no say in how much they pay in taxes, but you can pay fewer taxes legally. It’s not by using a loophole, but simply by understanding how the tax code works.
Owning a home means you may be eligible for deductions and credits for origination fees, mortgage interest, property taxes, and more. Here are a few tips from Turbo Tax that we personally use and know to be true!
“The best things in life are free, but sooner or later the government will find a way to tax them.” - Anonymous
Mortgage Interest Deduction: You can write off mortgage interest from the year of the purchase to the year of the sale or until the mortgage is paid off.
Number two: You may deduct loan origination fees, loan discounts, discounted points or maximum loan charges in some cases.
Number three: If you sell your home and pay off your mortgage early, your lender may require you to pay a prepayment penalty, but you can deduct it as part of your mortgage interest.
Number four: Real estate taxes paid at a settlement or closing. Taxes you pay based on the assessed value of your property are deductible.
Number five: When you sell your home, you can add all costs associated with major home improvement done since the purchase of your home to your cost basis, which reduces the tax on gains made from the sale.
Number six: You can reduce your taxable gain when you sell your home by deducting the total amount of your selling costs including real estate broker's commissions, title insurance, and more.
And number seven: Tax law gives you a big tax break when you sell your home if you have lived in the house for at least two of the five years before the sale. Usually, a single homeowner can take up to $250,000 of profit tax-free and a married homeowner can take up to $500,000 of profit tax-free.
Please consult with your tax advisor for more details and conditions.
— Brittany Williams, The Giambra Team’s Director of Client Care
CONTRACTORS WE RECOMMEND
A great contractor is someone you can rely on to get the work done on schedule and within the budget. That is why The Giambra Team recommends the following people to do the job!
Ryan Patterson — Fence Contractor — R.P. Fence Co, LLC
716-783-2389 - RPfenceCo@gmail.com
Ryan has been in the fencing business since 2016. They can install or repair any type of fence at any time of the year, and will travel to just about anywhere in New York State! Chain link fence is still the most economical and affordable option but vinyl fencing has become extremely popular. Ryan says no project is too big or too small, they will do it all! Follow them on Facebook to see examples of their work: R.P. Fence Co, LLC. If you give them a call please let them know that The Giambra Team sent you!
Nick Miller — General Contractor — One Complete Property, LLC
716-946-6579 - OneCompleteProperty@gmail.com
If you’re looking for a local, full service contractor who provides high quality work and excellent client care at an affordable cost, Nick is your guy! They have 20+ years in the business and they can do anything- electrical, plumbing, additions, heating, cooling, flooring, bathrooms, kitchens, and basements. His wife is also a professional cleaner, so they’ve got your next project completely covered. The best part is he has availability to book your home renovation project now! They are available 24/7 and can respond to emergency calls as well. Give Nick a call for a quote and let him know The Giambra Team sent you!
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