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First Time Home Buyer – 2017 Income Tax Info

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First time home buyer tax- breaks for your 2017 income taxes.

So, you decided to buy a house in 2017! First and foremost, CONGRATULATIONS! Homeownership (particularly for if you’re a first time home buyer) is a milestone. It deserves a moment of patting yourself on the back. Now take a deep breath and get yourself ready – tax time is upon us.

You may be asking yourself – “How does buying the house figure into filing the taxes this year?” This is an excellent question and one that you need to take seriously. You’ll want to get all your applicable documents together such as: your closing documents invoices and receipts for improvements to the house, receipts and proof of payment and your annual mortgage statement. Fortunately, the purchase of your house in 2017 actually comes with tax break benefits you don’t get if you’re a renter – if you itemize and you purchased BEFORE Dec. 15, 2017.

To help you get through the tax process we’ve assembled the following list of possible real estate related deductions, credits and helpful links. The list is not to be considered as tax or legal advice and may not be exhaustive.

Mortgage Interest Deduction

https://www.irs.gov/forms-pubs/form-1098-mortgage-interest-statement

“Mortgage Interest Credit” (taken by first time homebuyers)

http://www.michigan.gov/helpinghand/0,1607,7-258-53938-216692–,00.html

AND

https://www.irs.gov/pub/irs-pdf/f8396.pdf

Property Tax Deduction – who and how…

https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017

Energy Tax Credit

https://turbotax.intuit.com/tax-tips/home-ownership/energy-tax-credit-which-home-improvements-qualify/L5rZH56ex

And last but not least – The IRS publication for real estate deductions!

https://www.irs.gov/pub/irs-pdf/p530.pdf

We hope these resources will help you get through this first tax year as a homebuyer with a little better understanding. Since the tax code has changed for taxes you’ll be filing in 2018 – check back with us here next year! We’ll be happy to help.

Are you or someone you know thinking of buying or selling a house? Give us a call today at 269-488-1530 – We’ll be happy to help!