Last Updated on November 10, 2021 by Eric
As 2021 comes to an end, it is an excellent time to start getting your documentation ready, so you can file your taxes early. One of the most significant perks of homeownership is the tax breaks that come along with it. Most homeowners know that they can deduct mortgage interest, property taxes, and some moving expenses, but did you know there are a handful of other expenses homeowners can deduct?
Tax Breaks For Homeowners
We should add that you should consult with your tax accountant to make sure you qualify for these tax breaks and ask them which forms are needed to claim them. Now, let’s take a look at some tax breaks available to South Carolina homeowners in 2021.
1. Home Office
One reason for the boost in Lake Keowee real estate was that people who were given the green light to work from home permanently decided to move to a more scenic and relaxed area. Others chose to leave the traditional workforce altogether, come up with a business of their own, and set up shop in their lakefront home. The good news for the latter category is that you can deduct some of your home office expenses.
Those who are self-employed can deduct utilities like internet charges, repairs to your home office, and depreciation. There are some pretty strict requirements to be aware of, one being that your office space needs to be exclusively for your work. You can’t just throw a computer in the middle of the home theater and deduct all expenses related to that space. You also can’t make any of these deductions if you are working remotely for a larger company. You should ask them to cover these expenses, though.
2. Energy Savings
If you’ve made energy-efficient improvements to your home, you may be able to deduct them. This tax break allows for a deduction of 26% of any solar, geothermal, biomass, or fuel cell system used to create electricity, heat water, or regulate the temperature in your home. These are all significant improvements that would benefit your home in Lake Keowee.
3. Medically Necessary Home Improvements
Another tax break that many homeowners are not familiar with is deducting the cost of making home improvements for medical needs. These types of improvements could include widening doorways, adding a ramp, installing a zero-grade shower with rails, or changing doorknobs. If you want to take this deduction, you will need a documented medical reason for the upgrades if you get audited.
4. Deduction of Rental Expenses
If you decided to rent out your home in The Reserve at Lake Keowee or any neighboring communities, you could deduct the rental expenses. These expenses can include things like maintenance, utilities, supplies, and real estate taxes.
We’re Here To Help
While we are not tax experts, if you have any other real estate questions or would like information about Lake Keowee homes for sale, we are here to help. We are experts in lakefront real estate and work hard to make the home buying or selling process easy and stress-free. Give us a call to discuss your real estate needs.
