Wednesday, March 22, 2017

North Shore Home Tax Deduction Mistakes to Avoid This Year

Your list of homeowner tasks to tackle this spring may be growing by the day, but there is one more item to check off your list that will likely require the most research and preparation— your taxes. Tax season can be a stressful time, but if you carefully sidestep the following mistakes, you can rest assured that you won't have any larger issues down the road.

Deducting the wrong energy efficient appliances
There is indeed a tax deduction available to Glencoe, Winnetka, Highland Park, Northbrook and Deerfield area homeowners who install energy efficient appliances, but you'll need to be sure you don't deduct those that don't qualify. Research what is eligible for the deduction every year as the regulations do change.

Deducting PMI above income limit
Did you know that you can only deduct PMI (private mortgage insurance) only if your adjusted gross income is less than $100,000? While this deduction can really be worthwhile for North Shore homeowners, it is important to make sure you don't attempt to take it if your income is beyond the limit.

Deducting the wrong property tax
If you escrow your property taxes, you might be quick to deduct the total amount in your account from your income. However, keep in mind that this amount is just an estimate and could be higher or lower than your actual tax amount owed. To be safe, it's best to look on your 1098 Form from your bank to learn how much you really paid in taxes for the year.

As your local real estate expert on Chicago's North Shore, I'm here to answer all of your questions about listing your home or buying new! Give me a call today for more information about today's market and your next steps whether you're ready to buy or sell.

Janie Bress
Your North Shore Real Estate Expert

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