If you are a new or first-time homeowner, it might be challenging to keep up with the many demands of domestic life, plus bills, loans, and taxes. With the dreaded tax season quickly approaching, that challenge might look insurmountable, especially with the mountain of paperwork you had to climb over just to complete the settlement. While it may seem like the impossible task of the century, collecting, filing, and understanding each of your property documents will make this Tax Day and each subsequent one much easier to conquer — and it could even make it a lucrative experience!
The Joseph Bograd Real Estate Team is committed to helping homeowners close on their dream homes and successfully jump the hurdles of domestic life. They don’t call us the top real estate agents in Bucks County, PA, and Philadelphia without a good reason!
Here are a few of the tax documents you should keep an eye out for when you are collecting your paperwork:
Your Home’s Paper Trail
According to the Internal Revenue Service (IRS), every taxpayer should keep all relevant income documents for a minimum of three years, and any documents related to their properties for as long as the properties and features are in their names.
- Settlement Statement (HUD-1)
The HUD-1 is one of the most critical property forms you will receive. It lists everything from actual costs and purchase price to points incurred and the amount of your mortgage loan.
- IRS Form 1098 & Real Estate Tax Receipts
Most homeowners are eligible for the Home Mortgage Interest Deduction, which makes Form 1098 an essential document to file away. This form indicates how much interest you have paid out on your home, points you may have paid on your mortgage, and real estate taxes — all of which can be tax-deductible.
- W-2s & 1099s
Both of these forms are the standard income and wage forms required at tax time. Your W-2 should be supplied by your employer, while 1099 forms are from those for whom you have performed contracted work. Both forms offer a good glimpse into your yearly income and are necessary for accurate tax filings.
- Receipts & Cancelled Checks of Home Improvements
There are many instances in which home improvements and renovations may be deductible, including installing energy-efficient equipment like solar panels. Keeping all proof of home improvement services, supplies and materials, and labor could prove beneficial on Tax Day.
Tax Benefits for New Homeowners
In addition to collecting the appropriate documents to file your taxes correctly, these papers can also prove useful when calculating your tax deductions as a homeowner. Owning a home can offer you additional benefits come tax time, making the arduous task of organizing your property papers well worth it. Some of those advantages are listed below:
There are many advantages to purchasing a house, especially during tax season, when that return check makes it to your mailbox! If you are interested in homes for sale in Bucks County, PA, or anywhere else in the Greater Philadelphia region, the Joseph Bograd Real Estate Team will help you find the right home! Call us today for more information.