Owning a home in Broomfield, Colorado, is more than just about finding the perfect place to live—it’s a strategic financial move with hidden rewards. Sure, you get cozy living spaces and a potential appreciation in home value, but here's the kicker: the tax deductions! If you're a homeowner, navigating the tax landscape isn't just about filing paperwork. But if you’re scratching your head wondering where to start, don’t worry! A specialist in tax preparation Broomfield CO can help you uncover all the deductions you’re entitled to, and possibly more.
So, ready to dive into the world of homeowner tax benefits? Buckle up! These are the tax deductions every Broomfield homeowner should have on their radar.
You’ve heard of it, right? The mortgage interest deduction—it’s like the Holy Grail for homeowners. If you're paying a mortgage (and let’s face it, most of us are), a significant chunk of your payment goes toward interest, especially in those early years when it feels like you're just paying to borrow money. Here's the good news: the IRS allows you to deduct that interest.
This deduction could mean saving thousands, especially if you have a hefty mortgage. But hold up—there are limits. For loans after December 15, 2017, you can only deduct interest on mortgages up to $750,000. Older loans? You’re in luck, as the limit stretches to $1 million.
Broomfield homeowners, this one’s for you! Property taxes can be a substantial annual hit, but the IRS lets you deduct those, too. While Broomfield’s rates aren’t the highest in Colorado, they still pack a punch. You can deduct up to $10,000 ($5,000 if married filing separately) of what you pay in state and local property taxes, including your home’s property tax. Think about it—property taxes are a fact of life, but with this deduction, they sting just a little bit less.
In today’s remote-working, side-hustle world, many of us have transformed corners of our homes into makeshift offices. The home office deduction could be your new best friend if you use part of your home exclusively for business purposes. Whether you're running an empire from your home office or just making room for that side gig, the IRS lets you deduct a portion of your expenses like utilities, rent, and even home maintenance, proportional to your office space’s size.
Remember, the key word here is exclusive. This isn’t for those who occasionally send an email from the dining table. You need a dedicated workspace for business, and this deduction could shave some serious dollars off your tax bill.
Did you pay points to secure a lower mortgage interest rate? If you did, those points might be deductible. Generally, points—essentially prepaid interest—can be deducted entirely in the year you paid them if the mortgage is for your primary residence. Bought points on a refinancing loan or second property? You can spread that deduction over the life of the loan.
Have you made home modifications for medical reasons? Whether it’s adding ramps, widening doorways, or modifying bathrooms to accommodate a medical condition, those costs could be deductible as medical expenses. The only catch? You can only deduct the portion that exceeds any increase in your home’s value. It’s a win-win situation—improving your home for comfort and accessibility while potentially lowering your tax liability.
From maximizing your savings to ensuring a smooth tax season, an experienced tax advisor can be your secret weapon to keeping more money in your pocket. Book an appointment today for expert tax preparation advice in Broomfield CO.
