Make a Checklist to Review with Your Tax Preparer
LOS ANGELES, April 3, 2025 /PRNewswire-PRWeb/ -- One of the most difficult parts of preparing your taxes is gathering all of the paperwork. If you own your home, that task is multiplied and even more important; one overlooked deduction can cost you thousands. With April 15 just around the corner, Mercury Insurance is providing a checklist so you are prepared when you sit down to do taxes or review with your CPA.
Most of us are accustomed to deducting our mortgage insurance, but with more people now working from home, it becomes even more important to make sure you are including all aspects related to that space. That might include everything from investment in energy saving upgrades like energy efficient windows, to your cell phone and computer equipment. Missing these items can cost you a great deal of money in the long run.
"Mercury recommends that all homeowners set aside time to review homeowners deductions with your CPA or accountant," said Adam Bakonis, Sr. Product Manager for Mercury Insurance. "Missed deductions can wind up costing you thousands of dollars."
Here are some of the most common deductions for homeowners:
Mortgage interest – The interest you pay on your mortgage is deductible up to $750,000 as a single filer or as a married couple filing jointly. The only exception is if the mortgage was not to buy, build or improve your home.
Property taxes – Your property taxes are deductible up to $10,000 as a married couple filing jointly or $5,000 if you are single or filing separately.
Home office expenses – With working from home more common than ever, you may be able to deduct some of the expenses necessary to operate an office space. Check with your tax professional to validate requirements, including determining how much time you need to spend working from your dedicated home workspace(s).
Energy credits – For those making qualified energy-efficient improvements to your home after January 1, 2023, you may be eligible for IRS Energy Credits. You can claim the credit for improvements made through 2032.
HOA fees – HOA fees are generally not deductible when it comes to your taxes, but if you own the property for investment purposes and rent to a tenant, you may be able to deduct certain expenses.
Home equity loan interest – It is important to remember that home equity funds can only be used as a deduction if the funds were used to improve your home, such as a kitchen or bath remodel.
There are potentially thousands of dollars in deductions available to homeowners. It is important to explore all of your options and, if necessary, consult with your tax advisor to make sure you are receiving your maximum refund and not leaving any of your hard-earned money on the table.
About Mercury Insurance
Headquartered in Los Angeles, Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.
Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through nearly 4,100 employees and a network of more than 6,500 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit http://www.MercuryInsurance.com or follow the company on Twitter or Facebook.
Contact: PCG – Shane Smith (424) 903-3665 ([email protected])
Media Contact
Shane Smith, Mercury Insurance, (424) 903-3665, [email protected], http://www.mercuryinsurance.com/
SOURCE Mercury Insurance
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