Year-End Tax Tips for Colorado Springs Homeowners

Year-end can sneak up fast. If you own a home in Colorado Springs, a few smart moves before December 31 can lower your tax bill and set you up for a smoother filing season. Whether you plan to stay put, upgrade your home, or sell in 2025, you have options to capture credits, organize deductions, and avoid penalties. In this guide, you will find local deadlines, practical checklists, and clear answers so you can finish the year with confidence. Let’s dive in.

Colorado Springs property tax dates

Staying on top of county deadlines helps you avoid penalties and late fees. Colorado property taxes are collected in arrears, and El Paso County publishes annual due dates.

• Pay in full by April 30, or
• Pay in two halves: last day of February and June 15
• A new 4‑installment option begins for taxes payable in 2025 for qualifying residential taxpayers. Check your eligibility and whether your mortgage escrow allows it.

You can review the county’s calendar and payment options on the El Paso County Treasurer’s Important Dates page. See the current schedule and details.

Energy upgrades and credits

Thinking about solar, a battery, heat pump, windows, doors, or insulation? Many energy incentives are claimed for the year the equipment is placed in service, so completing work by Dec 31 matters.

• The Residential Clean Energy Credit generally covers 30 percent of qualified costs for items like solar, battery storage, small wind, and geothermal placed in service in eligible years. Review the Residential Clean Energy Credit.
• The Energy Efficient Home Improvement Credit offers annual caps across categories like windows, doors, insulation, and heat pumps. See what qualifies and annual limits.
• Local rebates from Colorado Springs Utilities can stack with federal credits. Some rebates may reduce the federal credit basis. Confirm program rules and application steps with your installer. Check Colorado Springs Utilities programs.

Tip: Keep invoices, model numbers, and installer paperwork. You will need them for Form 5695 and for any rebate submissions.

Should you prepay taxes?

Prepaying property taxes can help some homeowners itemize, but not all. The federal state and local tax deduction is capped at $10,000 per return through 2026, which limits the benefit for many households. Run the numbers to see if itemizing beats the standard deduction before making a large prepayment. See the IRS Schedule A instructions and SALT cap rules.

Mortgage interest and points

If you itemize, mortgage interest on acquisition debt is generally deductible, subject to loan limits. Keep your lender’s Form 1098, plus closing statements if you purchased or refinanced this year. Points on a purchase may be deductible in the year paid, while refinancing points are usually spread over the loan term. For rules and limits, consult the IRS guide. Learn more in IRS Publication 936.

Planning a 2025 sale?

If you sell your primary residence, you may exclude up to $250,000 of gain, or $500,000 if married filing jointly, when you meet the ownership and use tests. Track your capital improvements, since they increase your basis and can reduce taxable gain. Get the details in IRS Publication 523.

Seniors and service members

Colorado offers a Senior Homestead Exemption that can reduce property taxes for qualifying owners. There is also a statewide property tax deferral program with updated rules for seniors and some service members. If either might fit your situation next year, review eligibility early and note filing windows so you do not miss out.

Appeal your assessment

If you believe your assessed value is too high, watch for your Notice of Determination and follow the county’s protest and appeal steps. Timely filing is essential, and you will want comparable sales or an appraisal for evidence. See the El Paso County Board of Equalization appeal process.

Year-end homeowner checklist

Use this simple list to get organized before the year closes:

• Gather Form 1098, mortgage statements, and closing documents for any purchase or refinance.
• Save property tax bills and receipts, plus escrow statements showing any servicer-paid taxes.
• Keep invoices and manufacturer certifications for solar, batteries, heat pumps, windows, doors, and insulation.
• Confirm installation timelines for any energy projects you want credited this year.
• Compare itemizing vs the standard deduction, factoring in the SALT cap.
• Document home improvements that add to basis if a sale is on the horizon.
• Note county tax due dates, and confirm whether your escrow will pay on time.

Ready to plan your next move or weigh improvements with strong resale value? We combine neighborhood insight with design-informed advice to help you prioritize projects and timing. Reach out to Gary Kirkpatrick for clear, local guidance and a smooth path into the new year.

FAQs

Should Colorado Springs homeowners prepay property taxes to boost deductions?

• The SALT deduction is capped at $10,000 through 2026, so prepaying helps only if it increases your itemized total above the standard deduction. Review the rules in the IRS Schedule A instructions.

Can I claim a federal credit if my solar or heat pump was installed this year?

• If it was placed in service by Dec 31, you generally claim it on Form 5695 for that tax year. See the Residential Clean Energy Credit for eligibility and documentation.

What counts as a capital improvement vs a repair for taxes?

• Improvements add to basis, while routine repairs usually do not for a primary home. For examples and recordkeeping tips, see IRS Publication 551.

If I sold my home this year, can I exclude the gain?

• You may exclude up to $250,000 of gain, or $500,000 if married filing jointly, when you meet the ownership and use tests. Details and worksheets are in IRS Publication 523.

How do I appeal my El Paso County property assessment?

• Follow the steps and deadlines on your Notice of Determination. The county outlines procedures on the Board of Equalization appeal page.

Where can I confirm mortgage interest and points rules?

• For limits, examples, and how to handle refinancing points, refer to IRS Publication 936.