Common Tax Deductions
Home renovations, home remodeling and other home expenses that are made for medical and health related issues can be deducted. This includes any modifications for a disabled person or ill person living in the home. A few examples of the types of renovations are as follows: handicap ramps, specialty air filtration systems, air condition units, or swimming pools to help treat an illness.
Not only are there deductions for owning and maintaining your home, but there are also deductions for selling your home. Advertising fees, legal fees, real estate agency fees, title insurance and any fees associatd with the selling of your home can be declared as a deduction. You can also deduct certain home improvements such as paiting, landscaping, home improvements, as long as they are being done with the intention of making your home gain value.
Maintaining a business from your residence is can be deducted as a home office expense. Home office deductions can be very tricky and you will really need to consult with your tax CPA so that you properly deduct your home office expense.
Refinancing can be a pain, but it does come with its advantages. If you recently refinanced, then you can deduct points you paid for the new loan. However, you cannot deduct all points at one time. You must divide them evenly throughout your loan. For example, if your loan was for 20 years and you have 40 points, you can deduct 2 points a year.
The IRS allows you can deduct all of the interest you pay on your mortgage for both your first and second home, up to $1.1 million. In fact, the mortgage interest deduction is the largest single tax break in the tax code.
The furniture that youre using part time for business purposes can also be partially tax deductible. You get this deduction by depreciating a portion of the total cost of the furniture over a period of years.