Real Estate Taxes: Tips and Updates

Image of a smart phone being used as a calculator to factor real estate taxes.

The new deadline for filing last year’s taxes is Wednesday, July 15, 2020. Time to review the current tax implications of owning a home.

First, we need to itemize homeowner deductions if we decide to claim them on our federal returns. There are a number of deductions available, but if you’re like most homeowners, you won’t itemize and claim them. This is because the IRS standard deduction is quite high since the Tax Cuts and Jobs Act of 2017. The standard deduction that applies to the 2019 tax year is $24,400 for married partners filing jointly, $12,200 for single and married people filing separately, and $18,350 for single heads of households.

Most people prepare an itemized worksheet at least for their own knowledge — if only to compare the standard deduction against the itemized total before deciding how to file, or to show their accountants the expenditures. So, here are some major deductions of note at the current time.

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