Hello, Omaha homeowners and soon-to-be homeowners! As we approach the end of 2024, it’s the perfect time to talk about something that might not be as exciting as picking out new curtains but is certainly important for your wallet – tax deductions! 💰🏡
If you’ve recently joined the homeowner club in beautiful Omaha, you’re in for potential tax breaks. Let’s dive into the deductions you should know about for the 2024 tax year.
Mortgage Interest Deductions
The crown jewel of homeowner tax breaks! In 2024, you can deduct the interest paid on up to $750,000 of mortgage debt (or $375,000 if married filing separately). For most Omaha homeowners, this covers their entire mortgage.
Pro Tip: If you bought your home this year, remember to include any interest paid as part of your closing costs.
Mortgage Points Deductions
Did you pay points to lower your interest rate? Good news! These are often deductible in the year you paid them. Each point is equal to 1% of your mortgage amount.
Omaha Market Insight: With our competitive housing market, many buyers have opted for points to secure lower rates. This deduction could be significant for 2024 Omaha buyers!
Property Tax Deductions
Omaha and Douglas County property taxes can be deducted, but the $10,000 cap on state and local tax (SALT) deductions is still in place for 2024.
Local Update: Omaha property values have seen steady growth. If you recently purchased a property, your tax assessment might be higher than the previous owner’s.
Home Office Deductions
With remote work still popular in 2024, this one’s crucial. If you use a portion of your home exclusively for business, you may be able to deduct expenses related to that space.
Omaha Trend: Our city has seen a boom in home-based businesses and remote workers. Make sure you’re tracking those home office expenses!
Energy-Efficient Home Improvements
Omaha’s weather can be… let’s say “diverse.” If you’ve made energy-efficient improvements to combat our hot summers or chilly winters, you might be eligible for tax credits.
2024 Update: The Inflation Reduction Act expanded and extended many of these credits. Some Omaha homeowners are seeing significant savings on solar installations and energy-efficient appliances.
Omaha-Specific Considerations for 2024
- Flood Mitigation: If you’ve made improvements to protect your home from flooding, these might be deductible as casualty loss prevention.
- Historic Home Renovations: Omaha’s beautiful old homes in neighborhoods like Dundee or Field Club might qualify for additional tax incentives if renovated according to historical preservation standards.
- First-Time Homebuyer Savings Account: While not a federal deduction, remember that Nebraska offers tax benefits for contributions to a First-Time Homebuyer Savings Account. If you’re planning to buy, start saving now!
Navigating these deductions can be as tricky as finding parking during the College World Series. Always consult a tax professional to ensure you maximize your deductions while staying compliant with the latest IRS rules.
Remember, every Omaha home and homeowner situation is unique. From the bustling Blackstone District to the serene streets of Elkhorn, your deductions might vary based on your specific circumstances.
Ready to dive deeper into the world of Omaha real estate and potentially unlock these tax benefits for yourself? Let’s chat!
Rob Washburn
Your Omaha Real Estate Expert
📞 402-981-6999
🌐 www.robwashburnrealestate.com
**Disclaimer: This information is accurate as of September 24, 2024. Tax laws can change, and this article is for informational purposes only. Always consult with a qualified tax professional for advice on your specific situation.