Home Ownership in Marina>Question Details

Alison Hillm…, Other/Just Looking in San Francisco, CA

How does owning a home in California help when it comes to tax time?

Asked by Alison Hillman, San Francisco, CA Thu Feb 14, 2013

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George Raymondo’s answer
Boy that's easy, as stated below (good answer by the way) there are multiple possible tax deductions as a homeowner. At least for now. There have been some rumors floating around that some of this deductions could be on their way to the chopping block. That would surely ruffle some feathers out there, so for now, these deductions that available to homeowners are BEEEUTIFULLL!

Best of Luck!
Web Reference: http://www.AFN-loans.com
1 vote Thank Flag Link Thu Feb 14, 2013
Thanks George!
Flag Fri Feb 15, 2013
BEST ANSWER
One of the touted benefits of owning a home is, in fact, certain tax benefits you may get by virtue of home ownership. The benefits come in the form of allowed deductions. Yes, it will require you to itemize your tax return, but too many people (4 million+ by some estimates fail to take advantage of deductions they are otherwise entitled to take on their main and, yes, second home, which can cost them thousands of dollars needlessly.

While the main deduction you'll hear most about is the mortgage interest deduction, there are others too, including the following:

Mortgage insurance premiums paid in connection with your qualified home after 2006 may be treated as deductible mortgage interest.

Property taxes are generally deductible too.  In certain cases and to varying degrees, home improvements may be deductible.

Prepaid interest and ‘points’ (also called loan origination fees, maximum loan charges, loan discount, or discount points).

Late payment charge on mortgage payment may be an eligible deduction. 
Mortgage prepayment penalty,


Consult IRS Publication 936, 2011 and be sure to consult your tax professional too.
0 votes Thank Flag Link Thu Feb 14, 2013
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