As tax time approaches, the last thing you want to do is make a misstep – Erik Sherman writes for houselogic on the top 6 mistakes homeowners make when filing taxes.
Missing mortgage interest deduction
This is the biggest and easiest deduction for lowering your tax bill, writes Sherman. You can deduct the interest portion of your mortgage payment.
Trying to deduct everything house-related
Everything that glitters isn’t gold, and everything house-related isn’t deductible. Don’t make assumptions on what’s deductible, writes Sherman.
The home office deduction
Not going for the home office deduction, for fear of being audited, happens often. If your work from home, get familiar with what qualifies for a deduction – as the deduction pays off.
Rental income ignorance
Rental income is tricky in the age Airbnb – check out Sherman’s explanation of that deduction here.
A helping hand
If you help someone in need by covering their house payment, you can do it as a money gift, writes Sherman, but be aware that if you gift the annual total of $14,000, you may have to pay a gift tax.
Failing to challenge property tax bills
The failure to challenge a property tax bill could cost you – for more on that, check out all the details on houselogic.com.