Filing Your 2022 Taxes as a Homeowner – Are There Tax Breaks Available?

As families gather everything they need to file their 2022 taxes, it’s worth asking whether or not additional tax breaks are available to you, as a homeowner. Here’s a list of questions to ask your CPA or tax preparer:

 

Question 1: Can I write off my mortgage interest? 

If you itemize your taxes, the interest you paid on your mortgage in the past year could be a tax deduction. If you took out your loan after December 16, 2017, you can deduct up to $750,000 (or up to $375,000 if married and filing separately). If your loan was taken out between October 14, 1987, and December 15, 2017, you can deduct up to $1 million ($500,000 if married and filing separately). If you took out your loan before October 14, 1987, all of your interest may be deductible.

When it comes to a mortgage that’s been refinanced, the limit depends on when your first loan was taken out. Here’s more information from the IRS on this topic.

 

Question 2: Can I write off house renovations? 

If you made medically necessary home improvements last year – such as building entrance ramps, support bars, installing healthcare equipment, widening doorways, etc. – these could be deductible on your taxes. If the improvements you made will increase the value of your home, however, they are only partially deductible. Here’s a resource from the IRS to help you determine what is deductible.

 

Question 3: Can I write off my home office? 

If you are self-employed and there is a space in your home used exclusively for your business, that could be deductible as a home office expense. Check this page of the IRS website for more details.

 

Question 4: Can I write off my house property taxes?

Yes – the maximum deduction of $10,000 ($5,000 if married and filing separately) can be taken. Look at this page of the IRS website for more information.

 

Question 5: Can I write off expenses on my rental properties?

If you own a rental property that isn’t your primary residence, you can possibly take advantage of a number of deductions. These include asset depreciation, repairs, and operating expenses. See this page of the IRS website for more details.

 

We hope this blog is helpful to you as you file your 2022 taxes! Reach out to us if you have any questions.