What Tax Deductions Can You Take in Your Conroe Apartment?
Saving money makes everyone feel good, but sometimes it’s difficult to save money on your taxes when you don’t own your home. Living in an apartment certainly comes with several benefits, and there are indeed some tax credits and reductions you can make even if you don’t own your own home.
Here are a few deductions and tax credits you might want to consider if you live in an apartment in Conroe.
Not All Conroe Tax Deductions are About Home Ownership
Homeowners certainly have access to some excellent tax deductions, but there are many tax deductions and incentives available to taxpayers who don’t own their homes. Many deductions have nothing to do with owning property, or they’re available whether you own the residence in which you reside or you rent it.
For example, you might be eligible to deduct the cost of recovering from a disaster from your taxes. If you experience a devastating flood or hurricane as much of the Gulf Coast did in 2017, you might be eligible to take the costs associated with recovering from that hurricane from your taxes.
Another payment you might be able to use as a tax deduction is the money you pay for health insurance. Here’s what Turbo Tax says about health care deductions:
“You can deduct the cost of medical insurance premiums that surpass 10 percent of your adjusted gross income, even if you are covered in an employer plan; for those who are self-employed, the 10 percent threshold for health insurance premiums is removed.”
Speaking with a tax professional can help you figure out the best ways to save money on your taxes.
Can You Take Rental Payments Off Your Taxes?
Since homeowners get to take some of their payments off their taxes (mortgage loan interest and property taxes are deductible), you might assume that payments you make to your rental company are also deductible. Unfortunately, rent isn’t a deductible expense.
Tax preparation company H&R Block explains:
“There are no circumstances where you can deduct rent payments on your tax return. Rent is the amount of money you pay for the use of property that is not your own. Deducting rent on taxes is not permitted by the IRS.”
H&R Block recommends that you look into the option to deduct the cost of a home office if you work from home.
The Future Might Bring Renter’s Tax Incentives
The tax laws are always changing, and each year brings updates and modifications to the gargantuan federal tax code. An interesting change regarding a potential rental credit that would mimic the sort of credits homeowners get has been proposed by a lawmaker in Florida.
An interesting article from realtor.com explains the proposal.
“…the average taxpayer shelling out about $1,500 a month (or $18,000 a year) could potentially save $4,500 annually through the deduction if he or she is in the 25% tax bracket…”
While the tax breaks available for homeowners act as incentives to encourage home buying, many people aren’t inclined to own a home and enjoy the convenience of living in an apartment. Further, some locales are too expensive for many first-time homeowners who must continue renting for financial reasons.
Live in Conroe at The Retreat
As our name would suggest, The Retreat is a place that’s easy to call home and where it’s wonderful to raise a family, come home from work each night, or relax. We have one-bedroom, two-bedroom, and three-bedroom apartment homes, and we’d love to show you around one of our beautiful residences. Get in touch today to set up a tour.