It’s Tax Time in Metro Detroit

Tax timeIt is that time of the year when every homeowner should be doing their paperwork on how much they owe the IRS. Having this in mind, it is important to note that certain expenses related to owning a home can actually be used as a form of tax relief. This is true regardless of the type of property owned by the individual; whether it is a condominium, a family home, a townhouse or any other type of residential property. Here are some expenses which can be very useful in tax management, especially for a new homeowner.

Mortgage Interest

Someone who is looking to find homes in Port Huron, Michigan, for instance, can never go wrong when they take out a mortgage on the house of their choice. This is because there are huge tax cuts for property owners who are servicing loans. It is estimated that the gross national savings by Americans, through the tax cuts from mortgage interest, exceeds $100 million yearly. This deduction can be claimed on both the primary or secondary houses, making mortgaging a convenient method of procuring and acquiring property in the vast Metro Detroit real Estate.

Mortgage Points

These are the fees which are a small percentage used to originate a loan used for purchasing property; and the IRS sees this as a form of mortgage interest payments made in advance. Depending on whether you meet a few requirements, you may deduct some of these mortgage points fully, in the year that they were paid. For instance, you could write off a $5000 tax payment just because you paid two points of $250,000 last year.

Home Improvements

Due to the recovery signs of the property market in the Metro Detroit area, a large number of homeowners undertaken extensive remodeling projects, to add to the value of their homes. These could be anything from adding some square footage to overhauling the roof. This may be good news for someone in search property, since the previous homeowners can get a tax reprieve from the purchases of the project materials. The price of the home can only get higher by a small margin, if any, owing to these improvements.

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