Getting Strategic About Your 2024 Tax Bill: Tax Reductions for Homeowners and Investors.

Still stressed about tax season?

As tax season comes to an end, now is the perfect opportunity to get your financial house in order. Assessing your tax picture should be a top priority, especially given market uncertainty and the fact that your tax structure, while a fact of life, is one of the few aspects of your financial picture you have some control over during these uncertain times. Maximizing deductions provides stability no matter which direction conditions trend – plus, it always feels good to see those refund cheques grow.

Whether you own your home or have added investment properties to your portfolio as well, substantial open doors exist to minimize your tax exposure.

Beyond basic deductions like investment property mortgage interest, tailored strategies can further slash tax obligations and free up funds for goals. Yet surprisingly, few taxpayers capitalize on all avenues due to a simple lack of awareness.

Now is the time to get educated on tax reduction potentials within your unique situation for significant savings this spring and beyond. Here is an overview of key deductions and credits to explore:

Homeowners:

--> Mortgage Interest Deduction writing off interest paid is an essential for all. But strategic refinancing also allows consolidating higher-rate debts onto lower-rate primary mortgages for further maximized savings.

--> Property Tax Deduction: itemizing local property levies provides another homeowner deduction to capitalize on.

Investors

-->Depreciation: writing off a portion of your rental property value each year, despite it appreciating in the background. Quickly adds up to major cumulative deductions.

-->Operating Expenses: mortgage interest, repairs, maintenance, advertising – nearly all regular rental costs are eligible write-offs.

-->Tax Credits: from rehabilitating historic property to offering reduced rent, specialized credits provide outsized returns.

-->Cash damming: Converts non-deductible mortgage interest to deductible by strategically channelling rental income to accelerate primary mortgage paydown. This optimization maximizes tax deductions for substantial cumulative savings over time.

The key is utilizing all avenues together through optimized planning – what you likely owe can be reduced dramatically. Yet the complexity causes many to leave substantial money back in government coffers.

If you own property, now is the perfect time to start reaping the benefits of deductions at your disposal. If you are unsure of where to start, let’s chat!

Book a time to Chat!: https://schedule.nylas.com/craig-fried-Discovery-Call

Craig Fried, MHA

Mortgage Agent, Level 2

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