Slash Your Tax Bill: Expert Tips for Homeowners in Paradise
Being a homeowner in San Diego County is a dream come true! From enjoying ocean views to soaking up the sunshine, owning a piece of paradise comes with unique advantages. But did you know your property also brings significant tax benefits? Before the next tax season arrives, Brad and Karen Mattonen of Coldwell Banker West, your trusted experts in San Diego County real estate, are here to help you unlock valuable savings.
Boost Your Refund with Energy Efficiency Credits:
The Inflation Reduction Act of 2022, opened doors for substantial tax cuts! Upgrading your HVAC system, adding insulation, or even installing solar panels can earn you a 30% federal tax credit, up to $1,200 per year. Plus, claim an additional $150 credit for a home energy audit. Looking for even more savings? Heat pump installations qualify for a credit of up to $2,000! Remember, every receipt counts, so keep them organized for tax time.
For 2023, households can claim as much as 30% of the project costs for various improvements. The total amount you can claim in a single year is $1,200 alongside a $150 credit for a home energy audit. If you have a heat pump installed in your home, you can claim a credit as high as 30% of the project costs. The maximum benefit for a heat pump is $2,000.
Make sure you keep all your receipts if you want to claim this credit.
Work From Home? Deduct Those Expenses!
Running your own business from your San Diego haven? You’re in luck! As a self-employed homeowner, you can deduct expenses dedicated to your designated home office, even if you don’t itemize. From office furniture and equipment to utilities and mortgage interest, claim your rightful tax breaks. And good news for renters – you can enjoy these deductions, too!
The types of expenses that can qualify for deduction include:
- Office furniture
- Printers, scanners, and computer monitors
- Maintenance
- Mortgage interest
- Insurance
Check to See if your workspace passes the “exclusive use” test.
Unlock Savings with Home Equity Loan Interest:
Did you utilize a home equity loan or line of credit for renovations or a new dream home purchase? Deduct the interest you paid throughout the year, but remember, this perk applies only to improvements on your existing home or purchasing a new one.
It’s also essential that you itemize your deductions. Projects that would qualify include HVAC upgrades, new roofs, and remodeling projects. Interest is wholly deductible for up to $750,000 of qualified residential loans. and include details of qualified projects, like HVAC upgrades, roof replacements, or major remodels. Enjoy interest deductibility for up to $750,000 of qualified residential loans.
Mortgage Interest Deduction: Big Savings, Big Benefits:
Itemizing your deductions unlocks another treasure trove: mortgage interest deduction. Write off the interest you paid on up to $1 million of mortgage debt – limits may vary depending on your loan’s origination date and marital status.
Maximize Your Tax Breaks, Maximize Your Savings:
As a San Diego County homeowner, you hold the key to a world of tax benefits. Claiming these deductions can significantly lower your tax bill, leaving you with more resources to enjoy the California lifestyle you deserve.
Ready to dive deeper? Contact Brad and Karen Mattonen of Coldwell Banker West today! Their expert guidance will help you navigate the specifics of San Diego County tax rules and ensure you claim every valuable deduction available to you. Maximize your tax advantages and make your homeownership in paradise even more rewarding!
Call Brad and Karen at 858-518-2875 or visit homesinsdcounty.com today!
P.S. To learn more about specific tax rules in your area and the benefits you can receive for owning a home, don’t forget to visit the IRS website.
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