With the 2019 holiday season now behind us, we’ve officially rung in a new year, and a new decade. That means it will soon be time to start gathering information and preparing for your upcoming taxes.
Over the past few years, there have been some significant revisions in the U.S. tax law. So, without having to read thousands of pages of legislation, what exactly can (and can’t) you deduct on your 2019 taxes as a homeowner?
While there were some changes made since last year, the good news is that there are still a number of ways that you can reduce your tax bill if you own (or you owned) a home in some or all of the 2019 year.
Certainly, one of the biggest tax breaks for those who own a home is the deduction you can take on your mortgage interest. For the tax year 2019, homeowners are allowed to deduct interest expenses on up to $750,000 of mortgage debt.
If you go this route, though, you will have to forgo the standard deduction – which can be fairly sizeable, at $12,000 for single tax filers, and $24,000 for those who are married and filing jointly.
If you made any improvements to your home during 2019, you won’t be allowed to deduct these expenses – but you can add these costs to your adjusted basis when you sell the property in the future. So, don’t throw away those receipts!
If you took a new job and moved during 2019, you won’t be allowed to deduct your moving expenses, either. While these costs were deductible in the past, the Tax Cuts and Jobs Act eliminated this deduction between the years of 2018 and 2025.
If you’re considering a move in 2020, we can help you to find the ideal place to call home. We can also develop a plan to market your current residence to target consumers, as well as to other real estate professionals who may have clients looking in that location. So, contact us and we’ll get the process started!