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By Cheri Clampitt | Broker in Bozeman, MT

Tax Season is Upon Us! Common Real Estate Tax Errors to Avoid...

The 2013 Stats are out! The Bozeman Montana Real Estate.net Team boasted:

  • ~$40.5 Million Moved in 2013

  • 136 Transactions Closed in 2013

  • 98 Buyers Purchased Home with Bozeman Montana Real Estate.net in 2013

  • We Have 3,500 Active Buyers in a Maintained and Groomed Database

  • We Are Bozeman Relocation Experts with 95% of Leads Coming From Online

  • We facilitated our largest Commercial real estate transaction: Bozeman’s Wasabi!


This year, our Thinking Outside of the Box Approach allowed us to have a more dynamite year than ever before! Here are a few real estate tax tips to make sure your year is as productive as ours has been!  

  • Avoid Making Simple Errors (http://www.inman.com/2014/02/03/the-8-most-common-tax-filing-errors-and-how-to-avoid-them/): Deducting the wrong year for property taxes, writing in the wrong (or failing to write in) social security numbers, misspelling of names, wrong bank account numbers, or signature errors. These are all solvable by the 'slow down and be thorough' method.
  • Confusing Escrow Amount for Actual Taxes Paid: “If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two

"For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.”Read more: http://www.houselogic.com/home-advice/taxes-incentives/common-tax-mistakes/#ixzz2sMcN8VNw

  • Deducting Point Paid on Refinance: When you refinance, unlike the first year you buy, you must deduct points over the life of your new loan. For example, if you paid $3,000 in points to refinance into a 15-year mortgage, your tax deduction is $250/annually.
  • Not Tracking Home-Related Expenses: As you make improvements, keep track of them! File the documents (receipts, estimates, ect) as they occur so that you are not scrambling to find proof. This will also help for when you decide to sell!
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