Columbus homeowners, if you intend to itemize your 2017 return, there’s still time to take advantage of certain income tax strategies! Here’s a quick rundown of ideas from Realty Times, along with insights from our own experience. Consult with your professional tax preparer for actual tax advice – these are suggestions only. Everyone’s tax situation is different!
Pay 2018 property taxes early, if possible. If you make your 2018 property tax payments by December 31, 2017, you may be able to include these with other property taxes you’ve paid this year. If you pay your property taxes through the mail, the envelope would need to be postmarked by December 31 – meaning it would need to hit the mail before the last pick-up on the last business day of the year.
The catch: if your property taxes are paid through a mortgage escrow account, you probably won’t convince the lender to issue an early tax payment just for you. Mortgage servicers pay property tax bills in bulk, according to set schedules.
Make one extra mortgage payment. If you can make your January 2018 mortgage payment before the end of 2017, you may be able to add another month of mortgage interest to the mortgage interest paid in 2017.
The catch: your mortgage payment must be processed by your lender on or before December 31. A postmark date will not count in this case. Try making an extra mortgage payment over the phone if a walk-in payment isn’t possible. Make sure the payment will be applied on or before December 31!
Since the mortgage servicer issues an interest-paid statement directly to the IRS, the amount of interest you claim cannot vary from the servicer’s total.
Make an extra home equity loan payment. For 2017, you can still deduct the interest paid on a home equity loan. This will no longer be the case in 2018! Again, be sure your extra payment is processed and applied on or before December 31, 2017.
Donate excess furnishings, working appliances, clothing or other items. If you itemize your deductions, giving extra to charity before December 31, 2017 could help boost your tax break. Make sure you receive a receipt for the estimated dollar value of your donated goods. Also, not all charities are equipped to deal with donations of appliances, furnishings or electronics. Contact your local charities in advance and confirm what they can accept and use. If all else fails – a check is always welcome!
In addition to these deductions, ask your tax preparer about making an extra contribution to your 401k or IRA account before year-end. Also add up your medical deductions – including mileage to doctor appointments. See IRS.gov for more information about deductible expenses and the requirements for tax filing.
Buying a home in the New Year? Turn to Buyer’s Resource Realty Services for expert guidance! As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
