Did you know that if you got a mortgage and paid points up front, that the points are deductible? Or how about loan origination fees… did you know those are 100% deductible too? Did you know that points paid in a refi can sometimes be deducted?
It’s common knowledge that when you sell your home (after occupying it for 2 of the last 5 years), you can take the first $250,000 of profit if you’re single tax free, and the first $500,000 of profit if you’re married. But do you know how “profit” is calculated? Most people think it’s the current sales price minus the price you initially paid for your home. In actuality, it is the current sales price PLUS any money you spent on repairs and improvements, minus the price you price you initially paid. That means keep those receipts!!
For more tax tips from Frontdoor.com, click HERE.
*I am not a tax professional. Always consult your accountant… yada yada. Source: Frontdoor.com.
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