It’s Tax Season: What Does That Mean for Staten Island Homeowners?

Tax season is here, and while that might bring a mix of stress and anticipation for many, for homeowners in Staten Island, it comes with unique considerations. Whether you own a single-family home in Tottenville, a charming colonial in Westerleigh, or a waterfront property in Great Kills, tax season affects you in various ways. Understanding your property taxes, potential deductions, and how to maximize your savings is essential.

Understanding Property Taxes on Staten Island

One of the most significant tax obligations for homeowners is property tax. In Staten Island, like the rest of New York City, property taxes are assessed based on your home’s market value and classification. The city uses a complex formula to determine these taxes, and homeowners often find themselves questioning how their assessments are calculated.

Your property tax bill depends on:

• The market value of your home
• Your home's tax class
• Exemptions or abatements you qualify for

Each year, the city reassesses properties, and fluctuations in the market can impact your bill. If you believe your home’s assessed value is too high, you can appeal through the NYC Tax Commission.

Homeowner Tax Deductions and Credits

Tax season isn’t just about paying taxes—it’s also an opportunity to take advantage of deductions and credits that can put money back in your pocket.

1. Mortgage Interest Deduction

If you have a mortgage, the interest you pay on your loan is deductible on your federal tax return, up to a certain limit. This deduction is a significant benefit, especially for newer homeowners in neighborhoods like Huguenot or Annadale, where home values have been rising.

2. Property Tax Deduction

Homeowners can deduct state and local property taxes up to $10,000 ($5,000 if married filing separately).This deduction provides valuable support for homeowners in high-tax states like New York. While it does have a cap, homeowners with properties in sought-after neighborhoods such as Grymes Hill or Todt Hill can still benefit significantly from reducing their tax bills.

3. Home Office Deduction

With remote work now more common, many Staten Island homeowners have dedicated office spaces in their homes. If you’re self-employed and use part of your home exclusively for business, you may qualify for a home office deduction, which can help offset expenses like utilities and rent.

4. Energy Efficiency Credits

If you’ve upgraded your home with energy-efficient windows, solar panels, or HVAC systems, you may be eligible for federal energy credits. Many homeowners in Staten Island are making these updates to reduce energy costs and increase their home’s value, especially in areas like Eltingville and Oakwood.

First-Time Homebuyer Considerations

If you purchased your first home in Staten Island last year, congratulations! Now it’s time to understand how that purchase affects your taxes. Some benefits to keep in mind include:

• Mortgage points deductions (if you paid points to lower your interest rate)
• Potential credits for first-time homebuyers
• Moving expense deductions (if your move was job-related and meets IRS qualifications)

What About Selling Your Home?

If you sold a home in Staten Island in 2024, there are tax implications to consider. The capital gains tax exclusion allows single filers to exclude up to $250,000 of profit ($500,000 for married couples) if the home was your primary residence for at least two out of the last five years. This is especially beneficial in hot markets like New Dorp and Richmondtown, where home values have appreciated significantly.

If your profit exceeds the exclusion limit, you may be subject to capital gains taxes, so planning ahead with a tax professional is crucial.

How to Prepare for Next Year

The best way to navigate tax season smoothly is to prepare year-round. Here are a few tips for Staten Island homeowners:

• Keep good records: Maintain receipts for home improvements, mortgage payments, and tax statements.
• Review your assessment: If you believe your property tax assessment is too high, consider filing an appeal.
• Consult a professional: A tax professional or accountant familiar with New York City tax laws can help ensure you maximize your deductions and minimize your liabilities.

Final Thoughts

Tax season might not be the most exciting time of the year, but it’s a crucial one for Staten Island homeowners. Whether you’re looking for deductions, dealing with property taxes, or planning to sell, being informed can save you money and stress.

If you’re thinking about buying or selling a home this year, Robert DeFalco Realty is here to help. Our team understands the Staten Island market inside and out and can guide you through every step of the process. Contact us today to learn more about how homeownership and taxes go hand in hand!