Tax Tips for Coos County Homeowners for the 2022 tax season

Tax time is here, but if you purchased a home in 2022, I have some very important info for you to save you some money! 💵

6 Tax Deductions for Home Owners🌟🌟

1. Mortgage Interest✅️

If you have a mortgage on your home, you can take advantage of the mortgage interest deduction. You can lower your taxable income through this itemized deduction of mortgage interest.

2. Home Equity Loan Interest✅️

A home equity loan is essentially a second mortgage on your house. With a home equity loan, you can access the equity you’ve built in your home as collateral to borrow funds that you need for other purposes.

Like regular mortgage interest, you can deduct the interest you’ve paid on home equity loans and home equity lines of credit. However, you can only make this deduction if you used the borrowed funds to pay for a home improvement.

3. Discount Points✅️

When you take out a mortgage, you may have the option to purchase discount points to lower your interest rate on the loan. If you have this option, one discount point will equate to 1% of the mortgage amount.

4. Property Taxes✅️

As a homeowner, you’ll face property taxes at a state and local level. You can deduct up to $10,000 of property taxes as a married couple filing jointly – or $5,000 if you are single or married filing separately.

5. Home Office Expenses✅️

If you operate a business in your residence, you may be deducted some of the expenses of maintaining that space.

6. Mortgage Insurance✅️

Private mortgage insurance, or PMI, is another expense that many homeowners must factor into their budget. PMI is there to protect your lender if you are unable to continue making payments on your mortgage.

If you would like more information reach out to your local tax professional. If you don't have one comment below and I can give recommendations for the Coos Bay, North Bend, Coquille, Bandon, Oregon area.