When preparing your incomeÂ taxes there are certain items that homeowners should be aware of these tax breaks that they may be eligible to receive.
Mortgage interest: Homeowners are generally entitled to reduce their taxable income by the amount of mortgage interest they pay, as long as they itemize deductions on their tax returns.Â
Private mortgage insurance: Homeowners who are paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income is $100,000 or less ($50,000 for married taxpayers filing separately).Â Borrowers with incomes above $100,000 may qualify for a partial deduction.
Energy-efficient home improvements: If windows, doors, or skylights that meet the requirements of the federal Energy Star program were installed in 2011, homeowners can get a tax credit equal to 10 percent of the productâ€™s costs.
Points: The charges a borrower paid in points to get a mortgage are generally deductible if it was a first mortgage on the property.Â In the case of a refinance loan, all or some of the point charges might be deductible, but it gets complicated.
Property taxes: The amount paid in property taxes is deductible as long as it is based on the assessed value of the property.Â If the mortgage company collects money for property taxes, the amount actually paid should be on the 1098 form lenders send out each January.
Â Â Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!Â Â Â Do These Real Estate Tips Really Apply to YOU? Â We've learned these tips through years of experience as top real estate agents. But we know that YOUR situation might be different. That's why we're here. It's our job to personally advise homebuyers and sellers. Ask us if any tip that we've included here really applies to your situation.Â Do any of these tips raise questions for you? Didn't find what you're looking for? Let us know! We am happy to answer ANY questions. It's our job! There's no obligation, and we promise to get back to you quickly...Â Â
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Jeny Milosevic Realtor/Broker Associate JHM Business Services Lic. 01759329Â