TAX DEDUCTIONS FOR HOMEOWNERS
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Just Silly
Labels:
real estate taxes,
tax credit,
tax deductions
Well, it is that time of year again. Are you scrambling to find additional deductions to make the most of your tax return? Here are 3 IMPORTANT TAX DEDUCTIONS FOR HOMEOWNERS:
- Mortgage Interest
Did you know that mortgage interest is tax-deductible? You're allowed to deduct the interest on a loan secured by your first or second home. You may be somewhat limited if all mortgages on your home total either more than the fair market value of your home, or more than $1 million ($500,000 if you're married and filing separately from your spouse); or if yourhome equity loans total more than $100,000 ($50,000 if you're married and filing separately). But be sure you're not missing out on this one -- mortgage interest is a big deduction that some homeowners don't even know about. - Discount Points
If you refinanced your mortgage, you may be able to write off the points you paid to reduce your interest rate on the new loan. These points must be deducted proportionately over the life of your loan. So if your new loan has a 30-year term, you'll deduct 1/30th of your points each year. If you've refinanced before, and you have points from the previous refinance that haven't yet been deducted, you can write off the rest of those points in the year you refinance.
The points you paid for to reduce your interest rate on a home purchase loan are also tax-deductible for that year. Whether you or the seller paid for the points for you, you may be able to deduct them. - Capital Gains on the Sale of a Home
Once every two years, unmarried homeowners can profit from the sale of their home without having to pay taxes on the gains for up to $250,000, as long as the home was the seller's primary residence for two of the last five years. Married homeowners filing joint tax returns do not have to pay taxes on up to $500,000 of the profits from the sale of their home.
These three tax deductions can be very important when it comes time to pay your taxes and can possibly save you a lot of money. To learn more, use Quicken Loans Tax Savings Calculator and be sure to consult your tax advisor.
AND, to help the economy along the government has a brand new tax credit available to NEW HOMEOWNERS worth up to $7500!! This is a repayable credit over a long period of time, but has its perks to. Here is a link to a page that outlines on the details to see if you qualify for this credit: 7500 TAX CREDIT DETAILS
I am not a tax professional, just someone trying to pass on some good information, so if you're a homeowner, it's always a good idea to make sure you haven't missed any tax deductions. You may not be able to take all of these deductions, so please check with your tax advisor.
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February 2, 2009 3:39 PM
Can anyone tell me if the $7500 tax credit is only for certain homes? I heard you had to buy new construction? I am looking to buy, but don't really want new construction. It seems like the more I look at today's new construction that the older homes have so much more character and unique features (not to mention in many cases better built).
February 4, 2009 8:39 AM
I read about this tax credit in the paper. Can a realtor help with this process or is this something that the buyer has to do on their own? I am concerned that I will buy the wrong kind of house and then won't be able to claim my credit. Please help.
February 10, 2009 4:30 PM
HI My name is Jan McNair I am an agent with Prudential Nichols Real Estate. I am writing in reference to your questions about the 7,500 tax credits. ONe is that no you do not have to buy a new home, you just have to be a first time home buyer meaning that you have not owned a home within 3 years of your closing. The home must be purchased between April 9,2008 and before July 1,2009. I would be glad to sit and talk with anyone interested in this credit.. If you would like please call me at 251-610-0094 Thank you for your questions.
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