The end of the year is drawing near, and homeowners in Northern California are running out of time to make financial moves that could maximize their real estate tax deductions. From mortgage interest to local tax benefits, here’s what you should know before 2024 ends to save as much as possible on your tax bill. While these are valuable and informative tips meant to lead you in the right direction, you should always consult with a tax professional.

1. Mortgage Interest Deduction

The mortgage interest deduction is one of the largest tax benefits for many California homeowners. If you itemize your deductions, you can deduct the interest paid on mortgage debt up to $750,000 (or $1 million if you bought your home before December 15, 2017). With interest rates rising in recent years, this deduction has become more valuable, especially for anyone who recently purchased homes in this hot and high-priced housing market.

2. Property Tax Deduction

In Nothern California, homeowners can deduct up to $10,000 in combined state and local property taxes, including those on primary residences and second homes. With local property taxes varying by neighborhood, residents in higher-value areas like Land Park in Sacrament can often reach the deduction limit. Check your property tax records to confirm what you’ve paid so far this year, and make sure your payments are up to date to fully utilize this deduction.

3. Energy-Efficient Home Improvements

California, and Sacramento in particular, encourages sustainable building and green energy. If you’ve made eco-friendly upgrades to your home, like installing solar panels or upgrading to energy-efficient windows, you could be eligible for federal tax credits. For example, the Residential Clean Energy Credit allows a 30% credit on the cost of solar installations made in 2024. And if you haven’t made energy upgrades yet, there’s still time! Upgrade your home and take full advantage of these tax credits.

4. Home Office Deduction for Self-Employed Workers

With more residents working from home, self-employed individuals can qualify for the home office deduction. Unlike regular W2 employees, if you run a business or are self-employed, you can claim a percentage of your home expenses, like utilities, mortgage interest, and repairs, for the portion of your home dedicated to business use. Northern California’s vibrant freelance and entrepreneur community may especially benefit, so consult with a tax professional to see if this deduction applies to you.

5. Moving Expenses for Active-Duty Military

For active-duty military families who’ve moved as part of a permanent change of station, certain moving expenses can be tax-deductible. This applies to expenses for transportation, lodging, and storage related to the move. With the Sacramento and Bay Areas’ proximity to several military bases, this deduction can be a valuable benefit for qualifying families.

Final Tips

Before rushing to make last-minute deductions, check with a tax advisor. And don’t forget to keep thorough documentation, especially for deductions that have to do with home office expenses or home improvements, as these can be areas of scrutiny. By taking advantage of these deductions, you’ll be better positioned to maximize your savings come tax season and start the new year off on the right foot.