Top deductions for homeowners include interest paid on home improvement loans. Did you add square footage or did you have storm related damage from tornado or did you do major renovation to the house? If you used a loan and are paying interest, they are probably deductible. If you merely painted and carpeted, the interest is not deducted.
Did you replace windows or change out insulation to make the house more energy efficient? You may qualify for this cost to be deducted if you use standards that apply and keep in mind that $200 is cap on windows and $300 for heat pump or air conditioner replacement credit.
Everyone knows that as a homeowner the mortgage interest paid is deductible up to $1 million and this is probably the most beloved of all deductions. Nearly the 1st seven years of a loan is all interest so that can add up to huge tax savings.
Remember to include the Mortgage Debt Forgiveness Relief Act of 2007 if you sold your home and the mortgage amount owed was higher than what you sold for. Here is the key because your lender has relieved you of tax burden at least until end of 2013, the IRS controls tax on gifts and they decide. You see that bank relief was considered taxable gift by IRS and they could tax on that. However, until the end of 2013 it is not taxed as gift. Who knows what 2014 will bring?