Download a PDF copy of this Post, Top Homeowner Tax Tips to Ease Your Tax Burden, Now! Click Here!
How tax credits beat deductions...
HouseLogic notes that deductions only lower taxable income; while tax credits reduce overall tax liability. So, if you get a $500 credit, you pay $500 less in taxes. Nice!
Home Improvement Credits
Not all home improvements are created equal from a return on investment perspective. But, energy efficient updates are sure to pay you back, with either a tax credit, energy bill reduction or BOTH!
If you installed insulation, energy-efficient exterior windows, storm doors, or certain roofs last year, you may be able to take advantage of the Nonbusiness Energy Property Credit of up to $500 (lifetime max).
- The $500 tax credit applies to 10% of cost. To get the max credit, you must spend $5,000.
- Usually not applicable to installation.
- Once the $5,000 threshold is reached and applied, you can never use the credit again.
- $200 tax credit maximum for windows.
7 Must see tax tips
Claim your tax credit with IRS Form 5695.
Sell your home last year after making improvements? There are some tax consequences you should know about. CLICK HERE!
Every Homeowner Should Protest Property Assessment
Now, this is a big one. Across Northern Virginia, real estate assessments play a major role in determining property taxes. Each county has an assessment appeals process, giving you a chance to lower your tax bill. It's not something a lot of home owners do, but even if the assessor's value is close to being accurate, you should protest your property tax. Real Estate firm, Paperless Agent, reports typical savings from an assessment protest is over 15%. The annual savings may not be huge, but over time, you could end up shaving several hundred to several thousand dollars off your tax bill.
Steps to Take for a Protest
1. Check your county's appeals process... each county has specific dates, forms and procedures for filing appeals. Arlington, Fairfax & Prince William Counties encourage you to start your appeal with a call to the real estate appraiser in charge of your area (see links and numbers below).
2. Contact The Girls of Real Estate... We can find 3 to 5 properties similar to yours (comps) so you can attempt to prove that your property’s market value is either inaccurate or unfair, which is typically the only way you can win an appeal.
Typical savings from a successful assessment protest is over 15%!
Let's Chat Today!
Chelle Gassan,
571-330-6164
Candace Moe,
540-270-0274
Where to Make Your Property Assessment Appeal in Northern Virginia
Arlington County Department of Real Estate Assessments , CALL 703-228-3920 | Website
Falls Church City Real Estate Assessment, CALL 703-248-5107 | Website
Fairfax County Department of Tax Administration, CALL 703-222-8234 | Website
Fauquier County, CALL 540-422-8140 | Website
Loudoun County Office of the Commissioner of the Revenue , CALL 703-228-3920 | Website
Manassas City Commissioner of the Revenue, NO NUMBER | Website
Prince William County Real Estate Assessments Office, CALL 703-792-6780 | Website
Mortgage Interest & Refinancing
If your home loan is used for non-home related purposes, like college costs, you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan. Click to read more!
Until your mortgage is paid off completely, you’ll be glad to know you can deduct taxes on the following:
- Mortgage interest up to $1 million — or $500,000 if married filing separately — is deductible when you use the loan to buy, build, or improve your home
- Mortgage loans to buy or build a second home; or second mortgages
- Rental properties
- Refinancing and home equity lines of credit (HELOC) up to $100,000 of debt.
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