5 Tax Tips for Homeowners in Southern Maryland

Tax Tips for Homeowners in Southern Maryland!

Before tax season hits, think about brushing up on your property tax know-how to save money and ease stress. Whether you’re buying, staying or selling, in this tough housing market, the more you know the better. Here are 5 top tax tips!

1. Understand your capital gains tax.
So many homeowners don’t understand how their capital gains tax is calculated when selling. When you sell your home, you're taxed on any profit over a set amount, which changes based on your marital status. However, calculating your gains isn't as simple as price sold minus price paid. The IRS takes into account expenses invested in improving the property, so be sure to save receipts for any repairs, maintenance and upgrades.

2. Get a reliable estimate of your property tax bill.
This is a top tip for those looking to buy a new home in Southern Maryland. Don’t rely solely on the tax information in the property listing. Your tax bill can differ from the previous owner's bill, so do your research.

3. Deduct the interest.
On your tax return, you can deduct the interest you pay on your home loan. This deduction reduces your tax liability, and as your mortgage payments for the first few years are almost entirely interest, this means they are almost entirely tax deductible.

4. Lower your interest rates—deduct property taxes and points paid.
The IRS allows you to deduct your state and local property taxes from your income tax return, which can help to offset their expenses. You get a tax benefit if you paid for discount points to lower your mortgage interest rate.

5. Market value declined? Request a property tax reassessment.
You can get your taxes lowered if the value of your home has decreased. You will need to show proof of your home's current market value and recent comparable sales in your neighborhood. If you live in Southern Maryland and need a current market value of your property, please feel free to contact me. Maryland Department of Assessments & Taxation

For more information on property taxes, please contact Monique Hailer - CENTURY 21 New Millennium: Mobile: 443.532.5407 or email: moniquehailer@mris.com

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