Make a Checklist to Review with Your Tax Preparer
Most of us are accustomed to deducting our mortgage insurance, but with more people now working from home, it becomes even more important to make sure you are including all aspects related to that space. That might include everything from investment in energy saving upgrades like energy efficient windows, to your cell phone and computer equipment. Missing these items can cost you a great deal of money in the long run.
“Mercury recommends that all homeowners set aside time to review homeowners deductions with your CPA or accountant,” said Adam Bakonis, Sr. Product Manager for Mercury Insurance. “Missed deductions can wind up costing you thousands of dollars.”
Here are some of the most common deductions for homeowners:
Mortgage interest – The interest you pay on your mortgage is deductible up to
Property taxes – Your property taxes are deductible up to
Home office expenses – With working from home more common than ever, you may be able to deduct some of the expenses necessary to operate an office space. Check with your tax professional to validate requirements, including determining how much time you need to spend working from your dedicated home workspace(s).
Energy credits – For those making qualified energy-efficient improvements to your home after January 1, 2023, you may be eligible for IRS Energy Credits. You can claim the credit for improvements made through 2032.
HOA fees – HOA fees are generally not deductible when it comes to your taxes, but if you own the property for investment purposes and rent to a tenant, you may be able to deduct certain expenses.
Home equity loan interest – It is important to remember that home equity funds can only be used as a deduction if the funds were used to improve your home, such as a kitchen or bath remodel.
There are potentially thousands of dollars in deductions available to homeowners. It is important to explore all of your options and, if necessary, consult with your tax advisor to make sure you are receiving your maximum refund and not leaving any of your hard-earned money on the table.
About Mercury Insurance
Headquartered in
Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through nearly 4,100 employees and a network of more than 6,500 independent agents in 11 states. Mercury has earned an “A” rating from A.M. Best, as well as “Best Auto Insurance Company” designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on Twitter or Facebook.
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SOURCE Mercury Insurance

Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.