Tax Deductions for Coastal North Carolina Homeowners
March often signals the beginning of spring here on North Carolina’s Crystal Coast, but it’s also a time of preparation for another highly anticipated season— tax season! Homeowners in Coastal Carolina are entitled to several deductions that can help you save greatly on your overall tax bill this year, so be sure to make certain you’re taking what you can when filling out your return!
Go over your tax return with a fine toothed comb this year and double check that you’ve taken the following deductions before sending it off!
Private mortgage insurance
For those that did not make a 20 percent down payment, lenders likely required a private mortgage insurance (PMI) to be added into their mortgage payment. This does indeed increase your overall payments each month, but looking on the bright side, you can deduct your PMI as long as your adjusted gross income is less than $100,000.
Energy efficient upgrades
If you’ve made any updates to your NC home such as new insulation, windows, doors, skylights, solar panels, solar water heaters or the like, you may be eligible for this energy efficient deduction. However, note that for certain items like furnaces, there is a lifetime cap of $500, so if you’ve used this up in the past, you will not be able to deduct any more.
For loans up to $1 million, homeowners can deduct all of the interest paid on their mortgage. You do need to itemize deductions in order to take it, but keep in mind it’s often worth it to write off everything you’ve paid in interest for the previous year. For instance, on a $300,000 fixed-rate 30-year loan with a 4 percent interest rate, you would be able to deduct over $10,000.
Spring is a full season for homeowners in Atlantic Beach, Beaufort, Havelock, Newport, Emerald Isle and the surrounding areas, especially if you plan to sell in the near future! Give Gena Gilbert Real Estate a call today for more information about how you can take advantage of the current market this spring!
We’re here to help!