Buying a home, making home improvements, doing business out of the home or moving for business may make tax time less taxing—especially if you’re able to partially write off eligible expenses.
Purchasing a home, townhouse or condo has its perks. To take advantage of potential tax breaks, you’ll need Form 1040, Schedule A and most likely an accountant to help you properly access your mortgage interest and any points you paid to receive or refinance a loan.
You can receive tax credits by installing qualified energy generating systems such as geothermal heat pumps, solar water heaters, solar panels, small wind turbines to your main or vacation home. You can also receive a 30% credit on the cost of labor needed to install these energy-efficient home improvements.
Self-employed principals who use a portion of the home for business can itemize certain deductions on line 30 of Form 1040 Schedule C, Profit or Loss From Business. This can get quite complicated so keep those receipts and consult an accountant.