One major upside to property ownership is the power of tax deductions and write-offs. Did you know, though, that there are deductions and write-offs that extend far beyond the traditional ones such as mortgages? Let’s explore.

Renewable Energy Efficiency Property Credit

Your bottom line may benefit from installing home equipment that harnesses renewable energy sources such as wind and sun. Provided you installed said equipment by the end of December 2016, you are eligible for this tax credit to the tune of as much as 30 percent of its cost, including installation. The Solar Energy Industries Association finds that about 700,000 American homeowners have installed solar equipment since 2010, making this credit ever more popular as time goes on.

Residential Energy Credit

Likewise, if you have worked to make your home more energy-efficient through installing new windows, asphalt or metal roofs, insulation, storm doors, heating systems, or air conditioning, you may be eligible for a tax credit up to $500. The credit has been extended through year-end 2016, and not taking advantage of it is tantamount to leaving money on the table.

1031 Exchange

If you have exchanged property held for use in trade or business, or held for investment for a like-kind property also to be used for such purposes, you may qualify for tax deferment under Section 1031. Such an exchange may constitute something as simple as a property swap, delayed exchange, or simultaneous exchange – but beware as it can get more complicated from there.

Property Tax Deduction

You’re entitled to deduct real estate property taxes on Schedule A. You’ll find this amount on your annual escrow statement if you have a mortgage with an escrow account. In addition, if you bought a home this year, consult your HUD-1 settlement statement to confirm if you paid any property taxes when you closed on the home – these are deductible too.

Charitable Contribution Deduction

If you itemize, you will be able to deduct charitable contributions or money or property made to qualified organizations. You’ll typically be able to deduct as much as 50 percent of your adjusted gross income, but some cases limit that amount to 20 or 30 percent.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Copyright © 2017 Advent Properties, Inc. | Privacy Policy

1600 MacArthur Blvd. Oakland, CA 94602
Tel - +510.250.7918
Fax - +800.507.6593

150 Post Street, Suite 600, San Francisco, CA 94108
Tel - +415.347.5658
Fax - +800.507.6593

FOLLOW US

 

Cal BRE # 01897998

SUBSCRIBE FOR UPDATES

EMAIL*

SUBSCRIBE FOR UPDATES

EMAIL*

Copyright © 2017
Advent Properties, Inc. Privacy Policy
By Okralabs, NYC