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How can homeowners save this tax season?

Published 12:15 pm Friday, March 18, 2016

As the deadline to file taxes begins to approach, the Snohomish County-Camano Association of REALTORS® (SCCAR) wants to remind homeowners of the many tax benefits, savings and deductions they can take advantage of simply by being homeowners.

“There are many social and personal benefits of owning a home, but some of the most significant financial benefits only become apparent at tax time,” said SCCAR President Dave Duncan. “Many new homeowners, and even those who have owned their home for years, may be unaware of some of the fantastic tax breaks that come with owning a home.”

Here are some deductions and credits which homeowners can take advantage of:

Mortgage interest deduction. “If you took out a loan to pay for your primary or a secondary home, you can deduct the interest paid on your mortgage up to $1 million,” said Duncan. “These savings can add up very quickly.”

Property tax deductions. “A significant part of a homeowner’s monthly loan payments is taxes, which can be deducted annually,” said Duncan. “If you bought your home during this tax year, the year’s tax payments were divided so that you were responsible for paying the taxes during the portion the year you owned the home; and your share of those taxes is deductible.”

Energy efficiency tax credit. This provision allows homeowners to claim a tax credit (or a dollar-for-dollar reduction in taxes) of up to 10 percent of the amount spent, up to $500, for many green improvements done to their home that year. “If you installed energy-efficient windows or solar panels in your home, make sure that is reflected in your tax returns,” said Duncan.

The Snohomish County-Camano Association of Realtors® is “the voice for real estate in Snohomish County.” If you have questions for The Expert about Real Estate email us at info@sccar.com.