2015 federal and state tax breaks for Oregon home purchasers

Uncle SamIf you’ve missed the home buying frenzy the last few years, it’s not too late to cash in on some great tax breaks if you purchase a home this year in Oregon. IN fact, many of the tax breaks apply to both federal and state income tax returns, at least this year.

  1. Points – mortgage rates remain low – in some cases still under 4% for a home purchase. If you’re buying a home now and want even lower rates, you can buy your rate down and the “points” paid for that buy-down become tax deductible. However, be sure that you understand the cost of the buy-down, and the amount of time it will take to recoup your cost.
  2. Federal energy tax credits – You can still deduct 30% of the cost of installing alternative energy sources for your home, such as wind turbines, geo-thermal energy, solar energy panels, etc. So, for example, if the cost of the solar panels is $10,000, you get a $3000 tax credit PLUS the cost of energy savings in your home for years to come. This tax credit is scheduled to expire in 2016, so if you’re thinking alternative energy, be sure to get in on this savings before the end of next year.
  3. Oregon energy tax credits – there are a long list of energy saving devices that you can install in your home this year to qualify for savings on your Oregon state tax bill. These include not only the items listed in #2 above, but also items such as tankless gas hot water heater, a direct vent gas fireplace, duct sealing, solar hot water system, and much more. Click here to see the entire list of tax deductible items from the Oregon Department of Energy.

House are more than your home, they are also investments tax wise. While both state and federal legislatures continually bring up the topic of eliminating tax credits for home owners, the home builders, real estate and mortgage lobbyists are active working on your behalf to keep interest, property tax and mortgage deductions alive and well.

 

 

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