Prepare your 2022 taxes

The tax advantages of owning a home stick around all year long. As a refresher, here are seven of the most popular:  

1. Mortgage interest deduction: Couples filing jointly can deduct the interest they pay on up to $750,000 of mortgage debt ($375,000 if married filing separately).
2. Real estate taxes: You can deduct state and local property taxes up to $10,000 per year  ($5,000 if married filing separately).
3. Mortgage points: If you pay discount points when you take out your mortgage, you can deduct those, too!
4. Tax-deductible mortgage insurance: The IRS counts private mortgage insurance, VA loan funding fees, USDA loan guarantee fees, and FHA loan up-front mortgage insurance premiums as tax-deductible. There is always a chance this deduction may expire, so check the tax rules before counting on these savings.
5. Medically necessary home improvements: You can deduct medically necessary home improvements that help you, your spouse, or dependents who live with you. Examples include expanding doorways, installing ramps or lifts, lowering cabinets, and adding railings.
6. Moving expenses: Moving expenses are tax-deductible but only if you’re an armed forces member and moving because of a change of station.
7. Capital gains: The capital gains tax exclusion says you don’t have to pay taxes on the first $250,000 of profit from selling your home if you’re single or $500,000 if you’re married so long as you’ve lived in your home two of the last five years.   There are more tax breaks for where these came from, so it’s always best to work with a tax professional at tax time if you own a home. 

Reminder!! If you closed on your home in 2022, there may be tax-deductible expenses and other valuable information to your tax preparer.

****Reach out if you need a copy of your closing disclosure

Live in NJ? Check this out! 

The ANCHOR Application deadline is Jan 31, 2023. What is the ANCHOR program? Glad you asked! 

This program provides property tax relief to New Jersey residents who owned or rented their principal residence (main home) on October 1, 2019, and met the income limits.

• Homeowners with income of $150,000 or less will receive $1,500.
• Homeowners with income of more than $150,000 and up to $250,000 will receive $1,000.
• Renters with income of $150,000 or less will receive $450.