01 May Can You Save Money by Itemizing Your Taxes This Year?
If you purchased a house in 2016, you’re probably considering whether you should itemize your taxes or take the standard deduction.
The first thing you want to do is add up all the costs of buying the house. Find your closing settlement statement to figure out your loan costs and fees, which can be deducted. These fees include your application fee and underwriter fee, among others. Your biggest item on this list will be your mortgage interest, and the best place to find this is probably your last statement.
You can also deduct property taxes, but only for the period of time that you’ve owned the home. If you put down less than 20% to buy your home and you have mortgage insurance, it can be itemized as well.
Add up that list and compare it to the standard deduction; $6,300 for a single person or $12,600 if you’re married. If your list of costs exceeds the standard deduction, it makes more sense to itemize your taxes.
If you have any questions for us or you need a referral for a great accountant to help you out, we’re always here to help. Just give us a call or send us an email soon.