Most of us know about the last minute IRA’s we can open to save money on our taxes this year.  We can also max out our 401(k) and make charitable donations.  But have you given real estate a thought?  There’s still time to buy or even capitalize on other ways to save on taxes on the home you already own.  

Buy a House

December 31st is just around the corner, but realtytimes.com says there’s still time to close before the end of the year with a quick escrow.  Houselogic estimates you can save close to $16,000 in home-related deductions if you itemize each of the four tax benefits — mortgage interest, points paid, property taxes, and mortgage insurance.  

 

Refinance

Even though interest rates just went up, experts predict they’ll go up even more in 2016.  So, now is a good time to think about refinancing.  interest.com says if you can shave at least 1 percentage point off from your current mortgage rate, then refinancing is probably a good idea.  Otherwise, it’s probably not worth it.  The website says the best deal is one that offers “the lowest interest rate, with no points and lender fees of $2,000 or less.” 

 

Make your January House Payment Now

By making your January house payment this year, you’ll be able to deduct the interest this year.  

 

Pay Your Property Taxes Early

Depending on where you live, if property taxes are due in multiple chunks, it might make sense to pay next year’s first installment now, before the end-of-the-year.  This can especially be beneficial for homeowners who expect their incomes to decline next year.  First, though, make sure your mortgage company allows for pre-payments.  

 

Hold-off on Making Rental Payments

If you own rental property, ABC news says you can lighten your tax burden by delaying the receipt of payments until January.   

 

Buy a rental property

While time is running out, you still have a few days to buy a rental property.  The depreciation can actually help you make money.  Once you have renters, you can deduct the mortgage interest your renter is paying you plus travel, property taxes, HOA fees, repairs, maintenance, home office supplies, etc.