First-time home buyers face brand new challenges when they file their taxes. Unfortunately, the United States tax code isn’t meant to be easy for the average person to decipher. Minor errors or missed deductions can result in a new homeowner paying more than their fair share in taxes. In order to make the most of the deductions and credits available to them, it’s essential to work with a tax preparer who is familiar with the latest changes to the tax code. Accountants in Brooklyn may also advise clients who are considering a home purchase in the near future to help them make the best investment.
Buying a house is an expensive endeavor. In addition to the costs of the house, there are also fees for appraisals and inspections, closing costs and moving-related expenses. Some of these charges are tax-deductible, so it’s important to learn about the tax implications prior to making a decision on which experts to hire. Mortgage interest may also be tax-deductible. Since people who rent often take the standard deduction when they file their annual taxes, buying a house can make filing a lot more complicated.
An accountant can tell a client about other deductible expenses they shouldn’t overlook when they itemize their deductions. Keeping receipts throughout the year can sometimes mean the difference between paying a tax bill and getting a refund in the years following a new home purchase. With all the costs that new homeowners incur in their first few years in the house, a tax refund can certainly help the family budget. Accountants in Brooklyn commonly help people in this situation maximize their refunds by telling them about potential deductions and tax credits.
In addition to helping new home buyers save money on their taxes, an accountant may also prepare their tax returns so the client can be sure the information they sent to the IRS is accurate. Having tax returns professionally prepared reduces the chances of costly mistakes. Discover more info here about how sound advice and a thorough understanding of tax laws, as they apply to a new home owner’s situation, make the assistance of a professionally invaluable.