Tax Advantages Every Homeowner Can Use

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As a homeowner, knowing what tax advantages you can have makes a big difference. But often these are things you never needed to know, prior, and probably haven’t needed to research. It can seem like a great deal of complicated paperwork, but if it’s a large investment, it’s worth looking into. So, what tax advantages are out there? How can they benefit you as a homeowner?

Tax Advantages Every Homeowner Can Use: Capital Gains Exemptions

In order to get this exemption, the home needs to be your primary residence, and you have to live there for more than two out of five years. But, avoiding capital gains tax is always nice! If you sell your home, you can exclude up to 250k (or 500k if married). This means that the amount of “gains” (i.e. the amount that you made from selling the house) doesn’t get taxed because you’re in the process of purchasing another property.

Energy Efficient Deductions

There’s a tax credit in force until 2023 for those homeowners who install solar panels on their homes. These tax credits can save you 26 percent of the solar system cost. It has a rollover factor that might make it possible to continue to use the credits after that date if they are installed, grandfathering in the credit’s benefits. Likewise, your state might have some additional options that bring down the cost further, so make sure to look into that as well!

Tax Advantages Every Homeowner Can Use: Home Office Deduction

If, like thousands of workers in 2020, you had a need to work from home for an extended period and establish a home office, you might also qualify for this tax benefit. There is a simplified deduction which allows a deduction of $5 per square foot of space used in the home as a home office, to a maximum of $1500. However, if you do choose to claim your home as a place of business, check with your tax preparer, as it might cancel out the capital gains tax mentioned above.

 

The tax code can seem super complex, especially when it comes to home ownership, but do not despair!  As with all things, there are specialists who can help with all of these aspects, and help you know which things you qualify for using. For now, determine if you’re interested in having solar panels installed and whether you need to claim the home office deduction. And, if you need to sell in the future, that’s when the capital gains exemption applies.

Read this next: 3 Challenges You’ll Have to Deal with in Real Estate Investing

 Steelbridge Realty LLC  is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

 



 

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$2,950,000
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Active
4
BEDS
6
TOTAL BATHS
5,800
SQFT
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Fort Myers Subdivision
$3,000,000
Single Family Home For Sale
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3
BEDS
5
TOTAL BATHS
3,522
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3570 Stuart Ct
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Fort Myers Subdivision
$2,499,000
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6
BEDS
6
TOTAL BATHS
6,450
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1230 Gasparilla Dr
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York Manor Subdivision
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$1,049,000
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4
BEDS
4
TOTAL BATHS
5,130
SQFT
1255 Osceola Dr
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Fort Myers Subdivision
$1,375,000
Single Family Home For Sale
Pending With Contingencies
5
BEDS
5
TOTAL BATHS
5,138
SQFT
1323 Gasparilla Dr
Fort Myers, FL 33901
York Manor Subdivision
$679,000
Single Family Home For Sale
Pending
4
BEDS
3
TOTAL BATHS
2,150
SQFT
1206 Shadow Ln
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Country Club Estates Subdivision
$1,649,000
Single Family Home For Sale
Active
4
BEDS
6
TOTAL BATHS
3,970
SQFT
1291 Caloosa Dr
Fort Myers, FL 33901
Riverside Subdivision
$699,900
Single Family Home For Sale
Pending With Contingencies
4
BEDS
3
TOTAL BATHS
3,568
SQFT
1240 Wales Dr
Fort Myers, FL 33901
Burtwood Subdivision
New Listing - 3 weeks online
$625,000
Single Family Home For Sale
Pending With Contingencies
4
BEDS
3
TOTAL BATHS
2,596
SQFT
1362 Miracle Ln
Fort Myers, FL 33901
Becklers Riverside Add Subdivision
$849,000
Single Family Home For Sale
Pending With Contingencies
3
BEDS
4
TOTAL BATHS
3,005
SQFT
1372 Osceola Dr
Fort Myers, FL 33901
Riverside Subdivision
$275,000
Single Family Home For Sale
Pending With Contingencies
3
BEDS
2
TOTAL BATHS
1,851
SQFT
1420 Passaic Ave
Fort Myers, FL 33901
Mcgregor Estates Subdivision
$495,000
Single Family Home For Sale
Active
2
BEDS
2
TOTAL BATHS
1,600
SQFT
1317 Sunbury Dr
Fort Myers, FL 33901
La Chelle Manor Subdivision
$745,000
Land For Sale
Pending With Contingencies
1.84
ACRES
LEE
COUNTY
3131 Mcgregor Blvd
Fort Myers, FL 33901
Coconut Grove Subdivision
$450,000
Single Family Home For Sale
Pending With Contingencies
4
BEDS
3
TOTAL BATHS
3,043
SQFT
1470 Ricardo Ave
Fort Myers, FL 33901
Mcgregor Estates Subdivision
$336,900
Single Family Home For Sale
Pending With Contingencies
5
BEDS
3
TOTAL BATHS
1,720
SQFT
1521 Grace Ave
Fort Myers, FL 33901
Mcgregor Estates Subdivision
$2,950,000
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1.1381
ACRES
LEE
COUNTY
1301 Poinciana Ave
Fort Myers, FL 33901
Poinciana Park Subdivision
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$339,900
Single Family Home For Sale
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2
BEDS
1
TOTAL BATH
975
SQFT
1533 Coconut Dr
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$399,900
Single Family Home For Sale
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4
BEDS
4
TOTAL BATHS
2,672
SQFT
1259 Carlene Ave
Fort Myers, FL 33901
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$645,000
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4
BEDS
3
TOTAL BATHS
2,700
SQFT
1267 Carlene Ave
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Fort Myers Subdivision
New Listing - 3 weeks online
$419,000
Single Family Home For Sale
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3
BEDS
2
TOTAL BATHS
1,652
SQFT
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