Alexander Accountants Shares Key Homeownership Tax Strategies for Current and Future Planning

Alexander Accountants is helping homeowners better understand common tax strategies related to homeownership as they plan for both current-year filings and future tax decisions. With ongoing questions from clients about what is and is not deductible, the firm has outlined several of the most relevant areas for taxpayers to consider.

Common Homeownership Deductions

Several well-known tax benefits may be available to homeowners, though many come with limitations:

• Mortgage Interest: Homeowners may deduct mortgage interest, though deduction caps can apply for higher-value homes. These limits are important to consider when planning taxes or future real estate purchases.

• Mortgage Points: Points paid on a mortgage may be deductible on personal tax returns.

• Property Taxes: Property tax deductions are available but may be subject to caps depending on individual circumstances.

• Business Use of Home: Individuals with self-employment or 1099 income may qualify for a home office or business-use-of-home deduction.

• HELOC Interest: Interest on a home equity line of credit may be deductible if funds are used to buy, build, or substantially improve a primary residence.

Commonly Misunderstood Areas

Some tax topics create confusion for homeowners:

Home Improvements
Home improvements are not always immediately deductible. However:

• Homeowners with a qualified home office may deduct a portion related to that space in certain business situations.

• Rental property owners may be able to deduct or depreciate improvements.

• Purely personal improvements are generally not deductible but may reduce taxable gain when the home is sold, provided proper records are maintained.

Casualty and Disaster Losses

• Prior to 2018, certain home damage losses were deductible.

• Currently, deductions typically apply only when the damage results from a federally designated disaster.

Green Energy Incentives

Homeowners have also shown strong interest in energy-related incentives:

• EV Charging Stations: A federal tax credit remains available for qualifying installations through June 2026.

• Residential Clean Energy Credit: This 30% federal credit expired for property placed in service after December 31, 2025.

• Energy Efficient Home Improvement Credit: This credit expired after the 2025 tax year, including prior annual limits for improvements such as doors, windows, audits, and heat pumps.

“Each of these topics can be complex and highly dependent on individual circumstances,” said a representative of Alexander Accountants. “Homeowners benefit most from proactive planning and personalized guidance.”

Alexander Accountants encourages homeowners with questions to seek professional advice tailored to their situation.

About Alexander Accountants
Alexander Accountants is a licensed and insured accounting firm providing tax planning and preparation services to individuals and businesses. The firm focuses on helping clients make informed financial decisions through proactive guidance and personalized support.

Contact:
Alexander Accountants
(855) 203-8957
Fax: (978) 772-7314
www.dbalexander.com