Buying your first home is probably one of the biggest purchases you’ll make in your life. But, it does come with its advantages. Among them are tax breaks and deductions that you can take advantage of to save money if you play your cards right.
In today’s post, I’m going to cover some of the tax breaks and deductions that first-time homeowners should seek out this tax season to help them lower their tax bill.
While earning points is a good thing on the basketball court, it can be a financial drain on a mortgage. Mortgage points are what buyers pay to the lender to secure their loan. They’re usually given as percentage points of the total loan amount.
If you pay these points with your closing costs, then they are deductible. Taxpayers who itemize deductions on their IRS Form 1040 can typically deduct all of the points they paid in a year, with the exception of some high-income taxpayers whose itemized deductions are limited.
If you’re one of the many people who made a down payment of less than 20% on your home, odds are that you’re going to be stuck with PMI, or private mortgage insurance, until you pay off at least 20% of the loan balance.
The good news is that homebuyers who purchased their home in the year 2007 and after can deduct their PMI premiums. However, the state on premium insurance deductibles is something that frequently comes up in Congress, so homeowners should ensure that these deductions are still valid when filing their taxes.
Mortgage interest accounts for the biggest deduction for the average homeowner. When you receive your Form 1098 from your lender, you can deduct the total amount of interest you’ve paid during the year.
Another deductible that shouldn’t be overlooked by first-time buyers is local property taxes. Save the records for any property taxes you pay so that you can deduct them during tax season.
Home energy tax credits
Some states are offering generous tax credits for homeowners who make home improvements that save energy. There are a number of improvements you might qualify for, including things like insulation and roofs, as well as photovoltaic (PV) solar panels.
Many first-time buyers withdraw from an IRA account to be able to make a larger down payment on their home or to pay for closing costs. In most other cases, withdrawing from an IRA will count as taxable income. However, if your IRA withdrawal is used toward a down payment or closing costs, the tax penalty is waived.
Keep these tax breaks and deductions in mind this tax season to help you save money and get a larger refund.
4 Marian Rd, Framingham, MA 01702
When you move into a house, the aisles of paint at the hardware store can seem awfully overwhelming. How will you ever choose a color for each area of your home? Adding color to a home is part of what will make it your own. One of the last things that you may think of is the color of your front door. Instead of painting the entire exterior of your home, it might be a good idea to look at your front door.
It’s not a sin to think outside of the box when it comes to the color of your front door. Why not let your house stand out from the crowd? There’s many different colors that pop out and make great additions to any front door. We’ll break down some of the great possibilities for your front door here.
Red is a great color because it goes well with many neutral tones. It brings a bit of life to a sometimes rather bland exterior color of the home. You can put a red door on a home that is a shade of tan, gray, or even white. Keep in mind that there’s also many different shades of red for you to choose from that allow you to find the tone and feel that works for you.
Yellow Or Orange
You can certainly welcome visitors with a touch of cheeriness right at your front door. Yellow brings a certain kind of warmth to the entrance of your home. Yellow goes well with white, grays, tans, even brick and stone exteriors.
Orange needs to be used carefully. With the right tones surrounding it, you can make use of orange on your front door to make your home a bit more welcoming. Shades of orange work well with grays, blues, greens, and white exteriors.
Earthy Tones: Green And Blue
Green and blue are great colors to help your home stand out from the crowd and provide a touch of style and warmth right at the front door. There are so many shades of green to choose from. You can go with a light green such as mint or lime. You can also choose a darker shade of green like olive or avocado.
Green shades on a door pair well with whites, browns, tans, stone, cream, grays, and even shades of blue.
Blue is often a color that we use more indoors. There’s so many different shades of blue that are available. Blue doors pair well with an exterior that is gray, white, tan, stone, brick, or gray.
You can really use the front door of your home as an element of surprise. When you think of what colors go together, it’s hard to go wrong with a bold front door.
Want to list your house in the not-too-distant future? Ultimately, your house's curb appeal may have far-flung effects on your ability to sell your residence.
In most instances, a house with a dazzling front lawn is likely to make a distinct impression on potential buyers. This home may prove to be more popular than similar residences that are available, and as such, sell at or above its initial asking price.
On the other hand, a home with a messy, cluttered front lawn is unlikely to impress potential buyers. In fact, the front lawn may detract from the home's value, making it tough for a seller to maximize his or her earnings.
When it comes to enhancing your house's front lawn, it may be a good idea to hire a professional landscaper. Because if you have a professional landscaper at your disposal, you can get the assistance that you need to rejuvenate the front lawn of your home and enhance your residence's curb appeal.
Now, let's take a look at three tips to help you find the ideal professional landscaper before you list your house.
1. Shop Around
Many top-notch professional landscapers are available in cities and towns nationwide. If you evaluate assorted professional landscapers in your area, you may be better equipped than ever before to make an informed hiring decision.
Remember, as a home seller, it is important to do everything possible to enhance your house's curb appeal. And if you dedicate the necessary time and resources to find the right professional landscaper before you list your residence, you can improve your house's curb appeal and boost the likelihood of a fast, profitable home selling experience.
2. Ask Questions
A professional landscaper typically is happy to respond to your questions. Thus, you should not hesitate to ask lots of questions to a variety of local professional landscapers to ensure that you can find the right landscaper to fulfill your requests.
Don't forget to discuss your home improvement goals with various professional landscapers too. That way, you can compare and contrast myriad professional landscapers and hire a landscaper who can help you achieve the best-possible home improvement results.
3. Review Client Feedback
Client feedback about professional landscapers usually is readily available, particularly for landscapers who have completed a wide range of successful projects in the past. Therefore, you should search far and wide for client feedback to find a professional landscaper who can match or exceed your expectations.
A simple web search of a professional landscaper may provide you with access to client feedback. You also can request client referrals directly from a professional landscaper to learn what it's like to work with a particular landscaper before you finalize your hiring decision.
Lastly, if you need extra assistance as you search for a professional landscaper, you may want to consult with a real estate agent as well. A real estate agent can put you in touch with first-rate professional landscapers in your area and ensure that you can bolster your house's curb appeal before you list your residence.