10 Homeowners Tax Tips

Did you know a million Americans over pay their taxes every year!!  As you prepare your tax returns, be sure to read up on these tax deductions, they may save you thousands of dollars.

1. Mortgage Interest–this is usually fully tax-deductible, and applies to multiple mortgages as long as you don’t exceed $1 million.

2.Home Offices–Qualified home offices have tax deductions for maintainence, utilities and etc.  Everyone situation is different on this one, so be sure to check with your tax accountant.

3. Private Mortage Insurance (PMI), If you have brought your home since 1/1/2007 and have an adjusted gross income of under $110,000, you may be able to claim the PMI you have paid thru out the year.

4. Points–Did you pay  points to lower your mortgage interest rate or purchase a   home or refinanced this year?

5.Moving Expenses–If you had to relocate over 50 miles for a new job, your moving expenses and other directly related expenses are deductible

6.Vacation Homes. Now is the best time to buy a vacation home, interest rates are low, and affordable prices  make this one very possible. Real Estate taxes are deductible, personal property taxes, mortgage interest and again any points that you may have paid.

7. Even though usually your property taxes are included in your monthly payments they are deductiable too. Check your city, county and state as they too could have local income taxes that are deductible.

8. The best deal is Home Buyers Tax Credit. Ending on April 30, so you better hurry to take advantage of this one, you just have to be under contract by Apri 30, 2010.  This tax credit is for first time home buyers or existing buyers if you have been in present home for over 5 years.

9.  Health-Related Credit. If you have had to make home improvements for medical reasons (that do not add value to the overall home) can be tax deductible.

10.Capital Gains with No Income Taxes. Did you sell a home last year? If so, you should be able to realize a tax exempt profit of up to $250,000 once every 2 years,  be sure to check with your tax accountant.

 As always, please check with your tax advisor on which of these deductions may apply to you. Please keep in mind these are always subject to change.

Advertisement