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TAX BENEFITS OF HOMEOWNERSHIP

Maximize Your Homeownership Benefits

in the New Year

At S&D Real Estate, we believe in empowering our customers with knowledge. Understanding the tax benefits of homeownership can make a significant difference in
your financial well-being. Homeownership offers significant financial perks, and the start of a new year is the perfect time to ensure you're prepared to make the most
of them. Whether you’re a first-time homeowner or a seasoned property owner, this guide will help you optimize your investment in 2025.

Mortgage Interest Deduction
Deduct mortgage interest on loans up to $750,000 ($375,000 if married filing separately). This deduction can result in substantial savings, particularly in the early
years of a loan. Tip: Review your mortgage interest statement (Form 1098) from your lender for accurate filing.

Property Tax Deduction
Federal tax rules allow deductions of up to $10,000 ($5,000 if married filing separately) for state and local taxes, including property taxes.
Tip: Pay attention to upcoming property tax deadlines to ensure eligibility for 2025 deductions.

Florida Homestead Exemption
Primary Florida residences can qualify for up to $50,000 in exemptions, reducing assessed values and lowering property taxes:
First $25,000: Applies to all property taxes.
Next $25,000: Applies to non-school taxes on values between $50,000 and $75,000.
Tip: If you purchased your home last year, apply for the exemption by March 1, 2025, to take advantage of the savings.

Energy-Efficient Upgrade Credits
Federal credits are available for energy-efficient upgrades like solar panels, insulation, or efficient windows. For 2024, you can claim up to 30% of the costs, subject to
limits. Tip: Retain receipts and documentation for eligible improvements.

Capital Gains Exclusion
If you sell your home, exclude up to $250,000 ($500,000 for couples) in gains if you’ve lived in the property for 2 of the last 5 years.
Tip: Maintain records of major home improvements to adjust your cost basis and reduce taxable gains.

Refinancing Points Deduction
Points paid during refinancing are deductible over the loan's life or may be fully deductible if the loan is paid off early.
Tip: Work with a tax advisor to ensure proper calculation and filing.

Understanding Florida Property Taxes
Ad Valorem Taxes: Based on the property's assessed value.
Non-Ad Valorem Assessments: Service-related charges like waste disposal.
Tip: Review your property tax bill for accuracy and appeal high assessments through your local property appraiser if needed.

New Year Tax Planning Tips
1. Organize Documents: Gather last year’s mortgage interest statements, property tax bills, and receipts for any qualifying home improvements.
2. Prepare for Deadlines: Review deadlines for property tax payments and homestead exemption applications.
3. Consult a Tax Professional: Ensure you're taking full advantage of available deductions and credits for 2024.
Starting the year with these strategies can help you reduce your tax liability and enhance your financial well-being. For personalized advice, consult a tax advisor. At
S&D Real Estate, we’re committed to helping you make the most of your homeownership journey in the year ahead.

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