Owning a home in Chetek WI comes with its perks— from simply living in the beautiful City of Lakes to the additional storage space that renters are looking for to the tax benefits made available exclusively to homeowners! However, many residents are not aware of these deductions and as a result, skip over them completely.
If you have not yet filed your taxes, there is still time to look over the following tax deductions you are able to claim just for being a homeowner:
You are able to deduct mortgage interest paid on a mortgage of up to $1 million, or $500,000 if married filed separately, if you used the loan to buy a home, build a new home or improve your property. It is also important to keep in mind that a second mortgage, home equity line of credit or home equity loan does also count toward that $1 million total, so long as you use the mortgage to buy, build or improve a second home. So yes, you can deduct mortgage interest from your second home in Chetek WI!
In addition, any other loan secured by your home, to fund a child’s tuition for instance, does also qualify for the mortgage interest deduction— up to $100,000 for single filers or $50,000 for married filing separately.
The property taxes you paid for your home in Chetek do indeed qualify you for a deduction on Schedule A. The amount you paid will be printed on your annual escrow statement if your mortgage has an escrow account.
Private Mortgage Insurance (PMI)
Some homeowners in the City of Lakes may have been required to take out private mortgage insurance (PMI)— putting down a smaller amount on your home is one common reason for doing so. You can deduct the cost of PMI on Schedule A if you itemize your taxes and your income is less than $100,000, $50,000 if married filing separately. However, homeowners need to be aware this deduction only applies to loans taken out in 2007 or later.
Did you install new energy-efficient windows or appliances in your Chetek WI home? If so, you are able to claim the energy-efficiency tax credit! Just remember, this credit has a lifetime cap of $500, so any previously-claimed credits under this deduction will need to be subtracted from that limit.
Six Lakes Realty
Office: (715) 924-4806