Knoxville Homeowners: Are You Taking Advantage Of These Tax Breaks?
As a Knoxville homeowner, there are many great tax breaks available to you, which are just one of the many perks of owning a Knoxville home. In this post, we’ll look at some of the tax breaks every Knoxville homeowner should take advantage of.
If you bought a Knoxville home this year, you may be able to write off any points when you purchased the home. Points include any origination charges you paid at closing and any discount points you paid. Both of these items can add up quickly, so if you’ve paid them, they’re a great item to write off.
You’ll just need to determine if you can write off the points all at once or if it is something you have to spread out over the life of the loan. Generally, if the home is your primary residence, you can deduct is all at once. But, in order to write them off, you need to meet all of the criteria outlined by the IRS. You can double check if you qualify here.
Property taxes are another item that you can write off when you’re a Knoxville homeowner. This is a great deduction that all homeowners can take advantage of every year. Property taxes are always an expense when you’re a homeowner, so it’s nice to be able to write them off every year.
If you’ve recently closed on a Knoxville home, you can also write off your transfer tax as well. Transfer taxes are the cost of transferring the property in the Register of Deeds Office. These can be a costly closing expense, so it’s nice to be able to write this off.
Private Mortgage Insurance
Private mortgage insurance is another thing you may be able to deduct when you’re a Knoxville homeowner. You’ll be required to pay this when you put less than 20% down on a mortgage. Private mortgage insurance can be a costly part of your mortgage payment, so being able to write this off can be very beneficial to Knoxville homeowners.
There are certain income restrictions in order to qualify for this exemption. If you’re married, your adjusted gross income must be less than $100,00. If you’re filing married or filing singly, your adjusted gross income must be less than $50,000.
Finally, the mortgage interest deduction is another popular deduction for Knoxville mortgages. Homeowners are able to take advantage of writing off any mortgage interest that was paid on a primary residence, a second mortgage, a line of credit, or a home equity loan.
The mortgage interest deduction is available to any homeowner who is the primary borrower of a loan and who is legally obligated to pay the debt. This doesn’t apply is you’re a co-borrower on a mortgage for a son or daughter.
When you first buy a home, you pay the most mortgage insurance. So, as a new homeowner, this deduction can be extremely worthwhile.
Are you interested in buying a Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be contacted at 865-696-1888 or via email at [email protected]. Also, be sure to check out our Knoxville home search page to see what homes are for sale in the area.