Please Note: the following is not intended to be tax or legal advise- please seek the advise of a licensed tax professional OR legal representation.
It’s that time of year again when we grapple with the shoebox of sales receipts in the desperate hope that our toil will be rewarded by that coveted and colorful government issued refund check. At least that is the hope anyway. Hopefully this blog post will provide some general guidance on the issue of homeownership and taxes!
POSSIBLE HOMEOWNER TAX DEDUCTIONS
(always seek the advise of a licensed professional CPA)
To deduct expenses of owning a home, you must file Form 1040, U.S. Individual Income Tax Return, and itemize your deductions on Schedule A (Form 1040). If you itemize, you cannot take the standard deduction.
As a homeowner, there are four primary deductions: real estate taxes, sales taxes, home mortgage interest, and mortgage insurance premiums (MIP).
The only costs you can deduct are real estate taxes actually paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums.
For more information, go to https://www.irs.gov/publications/p530/ar02.html.
HOMESTEAD EXEMPTION- WHO,WHAT, WHERE & HOW?
The last day to file is April 30th, so REMAIN CALM, YOU HAVE TIME!
To qualify, you must own and reside in your home on January 1 of the year application is made and cannot claim a homestead exemption on any other property.
You likely inherited the homestead exemption from the former owner (if they had filed one) for the tax year of 2016, however, you must file for the Homestead Exemption in your name to receive the benefit going forward. More info can be found below or on the DCAD website www.dcad.org, if outside Dallas County, see bottom of this email for website details for your county.
A homestead exemption removes part of the value of your home and reduces your property taxes by lowering its taxable value. You may also be eligible for further exemptions, such as:
Over 65 Exemption
Disabled Individual Exemption
Disabled Veteran Exemption
*Agriculture Land Exemption
Application must be filed between January 1st and April 30 of the year of which you are claiming the exemption and must include required documentation.
This is a FREE benefit of being a Texas resident but you are responsible for filing in order to receive the benefit. You only have to file for a homestead exemption once. However, other exemptions may require you to file annually.
Step 1: Ensure that your home address on your Texas Drivers License or Texas State ID matches that of your new home. THIS IS REQUIRED!
Step 2: Complete the hard copy mailed to you by DCAD OR see if you are eligible to apply online by visiting www.dcad.org OR if outside of Dallas County, check with your local taxing authority.
Step 3: Find your property by using the Search Appraisal Tab and enter your last name or Search by Address
If eligible, you may click on the FILE HOMESTEADELECTRONICALLY and follow the prompts
IMPORTANT: IF YOU ARE PART OF A JOINT OWNERSHIP OF A PROPERTY BUT ARE UNMARRIED, A SEPARATE APPLICATION FOR EACH INDIVIDUAL IS REQUIRED.
Other Counties Taxing Districts:
Collin County Appraisal District 469-742-9200 www.collincad.org
Dallas County Appraisal District 214-631-0910 www.dallascad.org
Denton County Appraisal District 940-349-3800 www.dentoncad.com
Rockwall County Appraisal District 972-771-2034 www.rockwallcad.com
Tarrant County Appraisal District 817-284-0024 www.tad.org
If you know of someone who would appreciate the level of service I provide, please call me with their name and number. I’ll be happy to follow up and take great care of them!
Please don’t hesitate to call me if you should have any questions.