Most of us don't look forward to tax season, but if you own a home in Champaign, IL, you may be eligible for some tax breaks! Since you don't want to miss out on any home-related tax deductions, you'll want to meet with a tax advisor or use a tax program to find out which deductions you can claim. Here are some of the more common deductions that I would like the residents of beautiful Central Illinois to be aware of:

Mortgage Deductions.The interest you pay on a home mortgage is usually tax-deductible. Every year, you should receive a “Form 1098” from your lender which details how much mortgage interest you paid. To claim this deduction, you need to fill out “Schedule A”, under “itemized deductions” to record your interest deduction. These deductions can also include late payment charges and pre-payment penalties.

Moving expenses. If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct some of the expenses for you and your family and the cost of moving your household goods.

Deducting Real Estate Taxes. Real estate taxes are deductible in the year paid. They are generally reported on Form 1098, Mortgage Interest Statement, the annual statement from the financial institution holding your mortgage, or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are not always included on Form 1098, but may be itemized on your real estate closing statement.

Business Use of Your Home. If you are a homeowner who uses any portion of your home for business, from daycare to home office to rental property, you can take a deduction for business expenses.

Of course, tax deduction change every year and you may be able to claim deductions that you weren't even aware of! To get the most out of this tax season contact a professional tax advisor.

Are you ready to buy your dream home in Champaign, Illinois? You could claim these exemptions and deductions next year! Contact me to start your search!

 

Rose Price, CIPS, CRP
Prudential Landmark Real Estate
Champaignrose.com


Rose Price, CIPS, CRP

Prudential Landmark Real Estate

 ChampaignRose.com



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