Tax Tips for Homeowners in Hilton Head and Bluffton

Posted by on Wednesday, September 9th, 2015 at 9:51am.

Home ownership on Hilton Head Island comes with many benefits, including some sizable tax deductions. Ask your accountant or tax professional about whether these real estate deductions apply to you.


  • Mortgage interest – You may be able to deduct all interest paid on your mortgage.
  • Mortgage insurance – Mortgage insurance on government-backed mortgages may be deductible in the same way as mortgage interest.
  • Local property tax – You may deduct property taxes paid to the county tax collector.
  • Points & prepaid interest – Points and charges paid to obtain a mortgage for a home purchase or improvements may be deductible.
  • Home office deduction – The portion of your home used exclusively and regularly as an office space is deductible from your taxable income.
  • Green energy tax credit – Installation of renewable energy systems may be eligible for deductions up to 30%.
  • Moving expenses – If you moved more than 50 miles for a job opportunity, you may be eligible for moving deductions.
  • Renovation/demolition salvage – If you donated construction materials or demolition waste to a qualified charity, you may deduct the value of the donated materials.
  • Improvements added to basis – Qualifying improvements added to your cost basis may reduce your capital gains tax owed if you later sell your home.
  • Withholding credit for investors – If you purchased or sold an income property and 3.33% was withheld, check out the Franchise Tax Board’s withholding criteria to ensure you receive credits.

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