For many people, buying a home is one of the biggest investments that they will make in their lifetime. Homeownership can be expensive and it comes with a lot of responsibility, but it can also come with many benefits when it comes to the taxation of your living situation. At Leskun & Son Accounting, we know that the different taxes can add up, so it is important to take advantage of as many benefits and deductibles as possible. For this reason, we always make sure our clients are aware of what the tax benefits of homeownership are.
Tax Benefits and Deductibles Associated with Homeownership
Whether you are buying a new home, renting out property, or simply staying put in your current home, there are numerous ways to ensure that you keep as much money in your pocket as possible during tax season. Some of the tax benefits to watch out for as a homeowner include:
The Home Buyer’s Tax Credit
As a home buyer, you are eligible to claim $5,000 on your tax deductions for the purchase of your new home, as long as the home is eligible. The only catch is that you cannot have lived in a home owned by you or your spouse in the preceding four years.
Mobility and Accessibility Affordances
If your home has been renovated to make it more accessible for handicapped or elderly individuals, you are eligible to claim the Home Accessibility Tax Credit or the Medical Expenses Tax Credit, both of which are aimed at helping homeowners make adjusting their living space to be accessible for the impaired more affordable. Consult a professional accountant to know which of these benefits you are eligible for.
Rental Property Income Tax Breaks
If you rent out part or all of your property, you can claim many of the expenses of the property maintenance. Although the income of the property is taxed, there are many ways to save on the money spent on the rental property.
Working from Home
When you work from home, there are a vast number of expenses that can be deducted from your tax claim. These deductions can help to make running your own business much more affordable.
If you are interested in finding out more about the tax benefits of homeownership, or to get help from one of our professional accountants with any other home-related tax or accounting issues, please contact Leskun & Son Accounting at 1-877-826-1219 or fill out a contact form on our website.