Year-End Tax Tips for Houston Homeowners

Hey Houston homeowners! With December in full swing, it’s hard to believe we’re less than 2 weeks away from ringing in the New Year. As we enjoy the holiday festivities and all the joys this season brings, it’s also the perfect time for us to focus on something important: preparing for tax season. Womp, womp, womp....We know, we know—taxes aren’t the most exciting topic, but a little planning now can help us save some cash when tax day rolls around. So, let’s cozy up with a warm drink and dive into some year-end tax tips that can really benefit us as homeowners in Houston.

1. Check Our Property Tax Statement

First things first—have we taken a close look at our property tax statements lately? It’s easy to overlook, especially during the holiday hustle and bustle. But now is a great time to double-check. If we think our property’s value has been overestimated, we can appeal the assessment. We’ve seen friends save hundreds—sometimes even thousands—just by asking for a reassessment. Just think of what we could do with that extra cash during the holidays!

2. Don’t Forget the Mortgage Interest Deduction

Next on our list is one of the biggest perks of homeownership: the mortgage interest deduction. If we’ve been making those mortgage payments throughout the year, we can deduct the interest on our primary residence. Let’s gather our mortgage statements and make sure we’re taking full advantage of this benefit. Every little bit helps, especially as we prepare for the new year!3. Energy Efficiency Upgrades

Have we made any energy-efficient upgrades to our homes this year? Whether it’s solar panels, energy-efficient windows, or a new HVAC system, we might be eligible for some fantastic tax credits. These upgrades not only make our homes more comfortable but can also give us a nice boost on our tax return. It’s a win-win for us and the environment!

4. Home Office Deductions

With so many of us still working from home, many Houstonians have turned a corner of their house into an office. If we’ve done this, let’s explore the home office deduction. Keeping track of expenses like internet, utilities, and office supplies can really add up. Just remember, the space needs to be used exclusively for work to qualify, but those deductions can significantly help our bottom line!

5. Capital Gains Exclusions

Are we thinking about selling our homes in the coming year? If we’ve lived in our homes for at least two out of the last five years, we might qualify for capital gains tax exclusion. This means we could potentially avoid taxes on up to $250,000 of profit (or $500,000 for married couples) when we sell. This can make a big difference as we plan for our next chapter!

6. Keep Those Records Organized

We all know keeping track of receipts and documents isn’t the most thrilling task, but it’s super important! Now’s the time to organize everything related to our home expenses—this will save us a lot of stress during tax season. Plus, good record-keeping ensures we can claim every possible deduction without a hitch.

7. Consider a Tax Professional

If we’re feeling a bit overwhelmed by the thought of taxes, reaching out to a tax professional can be a smart move. They can help us navigate the ins and outs of tax laws and make sure we’re not leaving any money on the table. It’s like having a trusted friend guiding us through the process!

Let’s Wrap It Up!

As we enjoy the holiday season and prepare for the new year, let’s keep these tips in mind to make our tax experience a little less daunting. With some thoughtful planning, we can take full advantage of the benefits of being homeowners in Houston.

And if we’re thinking about buying or selling our homes—or even just curious about the market—let’s connect! At Lemon Grove Realty, we’re passionate about helping folks like us navigate the exciting world of real estate. Together, we can make our homeownership dreams a reality. Happy holidays, and here’s to a successful tax season ahead!