
Hawaii homebuyers particularly those who are purchasing a Honolulu home or Oahu home can make good use of tax credits and deductions when purchasing their new home. These tax credits and deductions are available due to the ever-changing tax code in the United States, designed by the IRS to serve as tax incentives to encourage home ownership and offer property owners significant financial advantages over just renting a property.
Honolulu homebuyers and Oahu homebuyers can turn to the services of Honolulu Real Estate Tax Advisor Diamond Head Tax Group OAHU to make the most out of these tax incentives. We are a trusted OAHU Tax Advisor for Hawaii Homebuyers and also provide HONOLULU Tax Consultant services to landlords and property managers for those planning on renting their Hawaii vacation homes or turning them into HAWAII AIRBNB or VRBO rentals.
OAHU Tax Advisor for HAWAII Homebuyers Available at Diamond Head Tax Group OAHU - Schedule a HONOLULU Financial Planning Consultation: 808-468-8041

Honolulu Real Estate Tax Advisor Diamond Head Tax Group OAHU will help you make the most out of the available tax breaks that both first-time homebuyers and existing property owners can utilize, especially with regard to mortgage interest and property taxes. We will go through the most common and useful tax considerations that pertain to OAHU Vacation Home Tax Filing.
For first-time HAWAII Homebuyers key tax considerations include:
HAWAII Home Mortgage Interest Deduction
Perhaps the most vital and commonly utilized tax deduction is the HONOLULU Home Mortgage Interest Deduction, which applies to interest paid on loans of up to $1 million, or $500,000 for OAHU Property Owners who are married but filing separate tax returns.
This deduction is ideal for first-time HONOLULU Homebuyers since the amortization on mortgages generally means owners pay more in interest in the beginning years, and less interest later over the life of the mortgage.
At the end of each tax year, your mortgage provider will send you a Form 1098, which details the total amount of mortgage interest you paid in the previous year. Your Diamond Head Tax Group OAHU Tax Preparer will then apply this amount toward your mortgage interest deduction on Schedule A of your tax return.

OAHU Mortgage Points Deduction
Honolulu Real Estate Tax Advisor Diamond Head Tax Group OAHU can help HONOLULU Homeowners deduct mortgage points, which are interest that’s prepaid in order for the borrower to obtain a lower long-term interest rate on the loan.
To claim the deduction, borrowers must itemize their tax returns, and the loan in question must be for $1 million or less. And your loan’s settlement disclosure statement must specifically list the applicable fees as “points.”
HONOLULU Mortgage Interest Credit
Not to be confused with the mortgage interest deduction, the mortgage interest credit counts directly against tax bills, lowering the total amount of taxes you owe for the year.
The credit is non-refundable, so you won’t receive a refund payment for it in the event the credit is for more than what you owe in taxes. If you are claiming the mortgage interest deduction, you must reduce your mortgage interest credit by the amount of the interest deduction.
In order to be eligible, OAHU property owners need a Mortgage Credit Certificate, usually provided by your state or local government when you enact the mortgage. The certificate will state the credit amount you’re entitled to receive. Use IRS Form 8396 to apply the credit to your return.

OAHU Property Tax Deduction
First-time OAHU Homebuyers will also be happy to know they can save considerably on annual taxes by deducting the property taxes paid on their home for the year. The deduction must be itemized on Schedule A and applies to primary residences for the year in which the taxes are filed. For the first year of OAHU Ownership, Honolulu Real Estate Tax Advisor Diamond Head Tax Group OAHU will help you deduct all taxes paid from the date of sale through the end of that year.
HONOLULU Home Improvement Tax
OAHU Property owners who utilize a home equity loan or a similar property-secured loan to fund capital improvements to their home can qualify for the same mortgage interest deduction they receive for the primary mortgage.
Keep detailed records and receipts from such capital expenditures, especially if you decide to sell: The cost of the improvements will increase your tax basis on the HONOLULU Home, lowering the amount you’ll pay in taxes on any profits you receive from the sale.

IRA Withdrawals
The IRS allows first-time OAHU Homebuyers to withdraw funds from IRA accounts in order to help with down payments and closing costs, without paying the normal 10% penalty applied to early IRA withdrawals.
This also applies to HONOLULU property owners making a new purchase who haven’t bought any real estate in the last two years. Technically they are considered first-time homebuyers, too. We will help you include this in your HONOLULU Vacation Home Tax Filing.
Borrowers can withdraw up to $10,000 from their IRA in order to purchase a home, without paying a penalty. They still need to pay taxes on the withdrawal. The exemption does not apply to 401K accounts.
HAWAII AIRBNB and VRBO Rental Tax Filing Services

Diamond Head Tax Group OAHU Tax Consultancy Services will make HAWAII AIRBNB and VRBO Rental Tax Filing will be much easier for HAWAII Homebuyers planning on renting their Hawaii vacation homes or turning them into HAWAII AIRBNB or VRBO rentals.
AIRBNB and VRBO are very popular with Hawaii landlords and property managers. According to the Hawaii Tax Facts brochure Vacation Rental Property Owners and Managers such as AIRBNB and VRBO owners are among the types of local businesses that must collect and remit GE Taxes.

Hawaii Business Registration must be renewed every year as well. For business owners who don't want to go through this repetitive process, delegating this to Diamond Head Tax Group OAHU experts will ensure that your Hawaii Business Registration and GE Tax License setup is done correctly, so you can focus your time and energy on running your enterprise.
Why Choose DIAMOND HEAD TAX GROUP CPA Services HONOLULU?

As Honolulu continues to expand, we continue to be the trusted local Oahu CPA firm. We are Located in the heart of Honolulu, and are focused on delivering professional and quality CPA Services to the small businesses and residents in Honolulu, Oahu.
We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we are here to provide you the financial guidance you seek.
When you partner with Diamond Head Tax Group, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and excellent client services.
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