Heather Fitzgerald | North Haven Real Estate, East Haven Real Estate, Branford Real Estate


If you work from home either full or part-time, you may want to give the home office deduction a go on your taxes. The problem with this deduction is that it can be tricky. 


Are You Eligible?


Your workspace needs to meet the criteria for business use. You need to use your work space regularly and as your principal place of business. If you don’t work from home as a self-employed individual, your employer must require you to work from home due to a lack of office space or other circumstances. The keywords in this part of the clause are “exclusively, regularly, and must.”


First, you’ll need to calculate the percentage of your home that’s used for business. This means that if your office is 100 square feet and your home is 1,000 square feet, you use 10% of your home for business. If you own the space you’re living in, you can deduct 10% of the mortgage interest that you pay each month. Keep in mind that you can’t double dip either. This means the amount of mortgage interest that you deduct on other parts of your taxes is reduced. If you rent your home, you’d deduct the percentage off of your monthly rental payments. 


Home Office Maintenance


If you own your home, you are able to deduct a portion of your property taxes, insurance, utilities, maintenance, and other expenses that are associated with your home office space. These expenses vary because some are direct such as the expense of you painting your office. Others are indirect. Home insurance applies to your entire home, so you would only apply a portion of that to a deduction. For the direct expenses, you are able to deduct the entire cost. 


For the indirect expenses, you’ll go back to applying the percentage of your home that is used for work. This means if we’re working with a 10% figure, you are able to deduct 10% of your utilities, 10% of your home insurance premiums, and so on.


If you rent, you can still deduct many of the same things that homeowners can from your taxes for a home office expenditure. The only thing that you’ll lack as a renter is the ability to write off things like mortgage interest, property taxes, and homeowner’s insurance. Know that you’ll be able to write off a portion of your renter’s insurance. 


The Complicated Stuff: Depreciation


You are able to depreciate the value of a home office as your home ages. It’s not always necessary to do this, so you should consult your tax professional before you decide to make this type of deduction. Equipment in your office, such as your computer, can be claimed as a depreciation over time as well. 


The important thing when it comes to your home office tax deduction is to do your homework. You don’t want to miss out on important savings!


Look no further! This oversized four-bedroom raised ranch, situated on almost an acre of land has everything you can ever need! The main level features an eat-in kitchen that leads to a deck, formal dining room and living room, Along with 3 spacious bedrooms, and all hardwood floors. Lower level is completely finished with a 4th bedroom, oversized family room with fireplace, brand new flooring, freshly painted, laundry room, and large walk in closet, perfect for a potential in law. Brand new roof, oversized 2 car garage, leak proof oil tank and it is on a cul-de-sac!

More Info on this Property | Sign up for Updates

2 Mohawk Drive, North Haven, CT 06473  

$315,000
Price
9
Total Rooms
4
Bedrooms
2
Baths
Look no further! This oversized four-bedroom raised ranch, situated on almost an acre of land has everything you can ever need! The main level features an eat-in kitchen that leads to a deck, formal dining room and living room, Along with 3 spacious bedrooms, and all hardwood floors. Lower level is completely finished with a 4th bedroom, oversized family room with fireplace, brand new flooring, freshly painted, laundry room, and large walk in closet, perfect for a potential in law. Brand new roof, oversized 2 car garage, leak proof oil tank and it is on a cul-de-sac!


Ready to make your homeownership dream a reality? In some cases, you may need to submit a home offer that surpasses a home seller's initial asking price, and these cases include:

1. You've fallen in love with a house.

Once you've found your dream residence, you'll want to do everything possible to secure this home as quickly as possible. Therefore, if you fall in love with a house, you can submit an offer that exceeds a home seller's initial asking price in the hopes of streamlining the homebuying journey.

Of course, before you submit an offer on any house, it is paramount to understand what differentiates an average home from a great one.

A great residence is one that you can enjoy both now and in the future. It likely will require minimal initial repairs, and as such, will be worth your time and resources.

2. You are facing steep competition.

For homebuyers who are competing for a high-quality residence in a buyer's market, it often pays to submit a home offer that surpasses a homebuyer's initial asking price. By doing so, you can guarantee your offer will stand out from others and boost the likelihood of securing your dream residence.

In a competitive real estate market, there is no need to hesitate to submit an above-average home offer, either.

A home offer that impresses a homebuyer may set the stage for a quick home sale. And if you put your best foot forward with a home offer, you should have no trouble acquiring a terrific residence, regardless of the current housing market's conditions.

3. You have substantial financial resources at your disposal.

A diligent homebuyer may choose to get pre-approved for a home loan. As a result, this homebuyer may be better equipped than others to submit a home offer that is higher than a home seller's initial asking price.

For example, a homebuyer who receives pre-approval for a home loan can start the homebuying journey with a budget in hand. This homebuyer then can check out houses that fall within his or her price range. And after this homebuyer discovers the perfect house, he or she can make an above-average proposal to acquire the residence.

To get pre-approved for a home loan, a homebuyer should meet with multiple lenders. Next, this homebuyer can review various home loan offers and select one that corresponds with his or her finances.

Lastly, if you need extra support during the homebuying journey, it pays to collaborate with a real estate agent.

A real estate agent will help you evaluate a broad array of houses in your city or town. In addition, this housing market professional can help you put together the right offer on a house to ensure you can secure your dream residence in no time at all.

Take the next step to acquire your ideal house – reach out to a local real estate agent today, and you can move closer to finding and purchasing your dream residence.


What happens after a home seller rejects your offer to buy his or her home? Ultimately, there are many questions to consider in this scenario, including:

1. Why did the home seller reject my offer?

A home seller may reject an offer for a number of reasons. And if you work with a real estate agent, you may be able to gain insights into a home seller's decision.

Typically, your real estate agent will submit an offer to a home seller on your behalf. This real estate professional also may work directly with a home seller's real estate agent. As a result, your real estate agent may be able to find out why a home seller rejected your proposal.

2. Is there anything else I could've done?

Were you an informed homebuyer? If so, you've probably done everything you could to submit a proposal that would meet or exceed a home seller's expectations.

In most instances, an informed homebuyer will go above and beyond the call of duty to submit a competitive offer from the get-go. He or she will understand the ins and outs of the housing market and prepare an offer accordingly.

Furthermore, an informed homebuyer will learn about the condition of a home and the prices of comparable residences in the same city or town. By doing so, he or she will be able to differentiate a seller's market from a buyer's one.

An informed homebuyer also will do everything possible to avoid a "lowball" proposal.

If a homebuyer submits a lowball offer, a home seller is likely to dismiss his or her offer immediately. In addition, this homebuyer risks missing out on the opportunity to purchase a great home.

3. What should I do next?

After a home seller rejects your proposal, you can submit a new offer to the home seller. Or, you can always continue to browse the housing market. Regardless of which option you select, it is important to stay optimistic.

Remember, there are plenty of fish in the sea. Much in the same vein, you're sure to find a terrific house that satisfies your lifestyle and budget needs if you continue your home search.

When it comes to discovering the right home at the right price, hiring an experienced real estate agent is paramount.

An experienced real estate agent will work with you throughout the homebuying process. He or she will learn about your homebuying needs and budget and ensure you can check out a broad array of high-quality residences.

Moreover, an experienced real estate agent will take the guesswork out of buying a home. This real estate professional will keep you up to date about new houses as soon as they become available, set up home showings and much more. That way, you can accelerate the process of going from homebuyer to homeowner.

Employ an experienced real estate agent to help you with your home search – you'll be thrilled you did. An experienced real estate agent will make it simple for you to find a stellar residence that you can enjoy for years to come.




Loading