FSBO BLOG

Below are a few of the most common taxes deductions for homeowners.  Make sure your accountant is aware of everything you qualify for, and is getting you the most back on your tax return. 

1.      Mortgage Interest:  This would have to be the most well know tax break for homeowners.  In most cases, you will be able to deduct all of your home mortgage interest. Whether it is all deductible depends on the date you took out the mortgage, the amount of the mortgage, and your use of its proceeds (irs.gov).

2.      Property Taxes:     Property Taxes are fully deductible.  Make sure you keep accurate records for the amount you pay in property taxes.

3.      Home based Business Deductions:  You are able to deduct a portion of the expenses for working from home, or running a home based business.  Two examples of expenses would be your Internet bill, or your Home/Cell Phone Bill.

4.      Home Equity/Improvement Loan Interest:  The interest you pay on a home equity loan may be deductible no matter what you use the money for. The deduction can save you money on your taxes.

These are just a few deductions available to you as a homeowner.  Make sure you have a good accountant, and ask them if there are any other deductions you can possibly take advantage of such as deducting Points charged on your loan, Selling Costs and Capital Improvements, Moving Costs, and Energy tax Credits. 

Please let us know what else you have been able to save on come tax time.

This entry was posted on Monday, January 7th, 2008 at 4:46 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.