Tax Savings for the Homeowner The end of the year is upon us and now is the time to begin focusing on the taxes for next year. While many people are focusing on investments, health expenses and other types of deductions, there are also several you should look into if you are a homeowner. Learning more about the deductions and tax savings you have as a homeowner can help you to save money. To get started, make sure you take the following information into consideration. It can be very helpful when you begin the process of filing your taxes, especially if you do so without the aid of an accountant or CPA. PMI This is one of the most expensive parts of any mortgage. However, if you have this in place, you may be able to deduct the amount you pay from your taxes. Keep in mind that this is set to expire at the end of 2015, but there is a chance that the government will extend this credit. Be sure to …show more content…
Homeowners are currently able to deduct a portion of the amount they pay to make their homes more energy efficient. If this is extended, making some upgrades to your home may be more cost-effective. Plus, it's a huge bonus for the environment at the same time. This is also something you will want to look into if you've completed any of these important upgrades to your home. First Time Homebuyers If you have or are planning to buy your first home in the near future, there is also something you should consider if you have an IRA. With your first home, you are allowed to take out $10,000 maximum during your lifetime to help pay for the down payment on your home. This is something you can do without the requirement to pay the 10% penalty for withdrawing early. Even if you have owned a home before, but haven't in the past three years you will be eligible for this. Keep in mind that each person has the same lifetime maximum, so a husband and wife could withdraw $10,000 each from their IRA for this purpose. Selling your