Maximize Your Refund This Tax Season With Real Estate!

When you own a home, you aren’t just building memories—you’re managing one of your most significant financial assets. With tax season right around the corner, many of our neighbors are asking the same question: "Am I missing out on potential savings?"

To help you navigate the complexities of property taxes, capital gains, and deductions, we sat down with our local expert, Jamie Abraham from Dash Tax LLC Based right here in the Rochester area, Jamie has helped countless residents optimize their financial health!

Q1: For the average homeowner in our area, what are the most commonly overlooked tax deductions or credits related to their primary residence?

“Homeownership doesn’t automatically mean a big tax break, but many homeowners still do better with the standard deduction rather than itemizing. If you do itemize, the most common home-related items are:

• Mortgage interest

• State and local taxes (SALT) (property + state income taxes, subject to limits)

• Points paid on a purchase or refinance (deductibility depends on additional facts)

Common misunderstandings:

• HELOC/home equity interest isn’t automatically deductible. In many cases, it only qualifies when the loan proceeds were used to buy, build, or substantially improve the home.

• Major improvements (roof, remodel, addition, etc.) usually aren’t deductible now, but they can increase tax basis, which can reduce taxable gain later when you sell.

Bonus tip for business owners: Ask about the “Augusta Rule”. In certain cases, renting your primary residence for up to 14 days/year can be tax-free to you, and potentially deductible to the business if done properly (business purpose, fair-market rent, documentation, etc.).”

Q2: What are some of the most significant energy-efficient home improvements that would qualify for tax credits or deductions?

“One quick timing note to start. Under the One Big Beautiful Bill (OBBB), these common homeowner energy credits generally terminate after 2025, so upgrades completed/placed in service in 2026 typically won’t qualify. There are two main buckets to consider…

Energy Efficient Home Improvement Credit:

• Examples: heat pumps/heat pump water heaters, insulation/air sealing, windows/doors, some panel upgrades, home energy audits

• Credit is generally 30% of qualifying costs with annual limits

Residential Clean Energy Credit:

• Examples: solar, battery storage, geothermal, fuel cells

• Often a larger credit for major renewable projects

Documentation tip: Keep itemized invoices, proof of payment, any manufacturer certifications (when required), and the placed-in-service date.”

Q3: If someone sold their home or bought a new one in the last 12 months, what are the top three documents they should have ready for their accountant?

“Homeowners should have the following three documents readily available for their accountant:

1. Closing disclosure / settlement statement(s) (purchase + sale if applicable). This is the best source for key tax details and many closing-cost items.

2. Form 1098 (mortgage interest statement) + property tax receipts/bills. This is especially important if taxes were paid through escrow.

3. Improvement and repair records, including receipts/contracts/dates (helps with energy credits and future basis/gain calculations).

Also watch for a Form 1099-S (if issued at closing).

Quick gain-exclusion reminder: Many homeowners can exclude up to $250,000 (single) or $500,000 (married filing jointly) of gain if they owned and lived in the home for at least 2 of the last 5 years.”

Q4: For our local real estate investors or those considering a "house hack," what is one strategy you recommend for minimizing tax liability?

“It is important to run rentals like a business from day one!  Track income and expenses consistently, save invoices and receipts, and ensure depreciation is handled correctly (often the biggest long-term benefit).

If you’re house hacking (living in part and renting part), be ready to allocate expenses between personal and rental use (often by square footage or another reasonable method).

Two common planning ideas investors should ask about:

1. 1031 exchanges: This type of property allows you to potentially defer gains when selling an investment/rental property (not a primary residence), but rules and timing are strict… plan before listing listing and/or going under contract.

2. Refinancing to buy more rentals: In many cases, interest remains deductible when the debt is tied to rental/investment use and properly traced/documented, keep clean records showing where proceeds went.

It is also worth discussing whether you qualify for the special allowance that can allow up to $25,000 of rental losses (subject to rules and income limits).”

Q5: What is the biggest piece of advice you can give to someone trying to get organized before the April 15^th deadline?

“Start with a quick “income + expenses” scan: list every place you earned money (W-2/1099/investments/retirement), and jot down any big deductible buckets (property taxes + Form 1098, charitable gifts, major medical, rental/self-employment expenses if applicable).

Create one “tax hub” folder (paper or digital) and drop every tax document into it as it arrives.

Use last year’s return (or your preparer’s organizer) as your checklist, and then mark each item “Received” or “Missing” so nothing slips through the cracks.

If you’re behind, file an extension, but remember it’s an extension to file, not to pay!”

Need Professional Tax Advice?

If you’re looking for a local partner to help you navigate your finances, we can’t recommend Jamie enough!

Address: 7424 Victor Mendon Rd, Victor, NY 14564

Phone: 585-446-3270

Email: jamie@maxmydash.com 

Website: maxmydash.com

Click here to book a call with Jamie!

Bottom Line

Understanding the financial side of homeownership is key to building long-term wealth. As your Real Estate Agent, I’m always here to help you understand your home’s value, while experts like Jamie Abraham ensure you’re protected on the tax front!