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Our mission at The HomeSmiths Team is to be your best resource for real estate advice. Whether you are a buyer, seller, or investor, our team of professionals can answer any questions you might have about real estate. Subscribe to this blog to get the latest news on local market trends and receive expert tips for buying or selling a home.

Monday, March 27, 2017

Can You Save Money by Itemizing Your Taxes This Year?

Did you buy a house in 2016? You might be wondering if you should take the standard tax deduction or to itemize them. Here’s how to find out which makes more sense for you.

If you purchased a house in 2016, you’re probably considering whether you should itemize your taxes or take the standard deduction. The first thing you want to do is add up all the costs of buying the house. Find your closing settlement statement to figure out your loan costs and fees, which can be deducted. These fees include your application fee and underwriter fee, among others. Your biggest item on this list will be your mortgage interest, and the best place to find this is probably your last statement. You can also deduct property taxes, but only for the period of time that you’ve owned the home. If you put down less than 20% to buy your home and you have mortgage insurance, it can be itemized as well.

If your costs exceed the standard deduction amount, you’ll save money by itemizing your taxes.

Add up that list and compare it to the standard deduction; $6,300 for a single person or $12,600 if you’re married. If your list of costs exceeds the standard deduction, it makes more sense to itemize your taxes. If you have any questions for us or you need a referral for a great accountant to help you out, we’re always here to help. Just give us a call or send us an email soon.

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