Leavenworth Real Estate

Hey everyone, i just read a great article on houselogic.com that i wanted to share with you.  With everyone rushing to get their taxes filed before the fast approaching deadline this month you might want to double check any home-related deductions.

1. Did you deduct property taxes for the correct year?  Property taxes are paid a year behind, you want to make sure you deduct whatever amount you actually paid this year, NOT the amount you were billed this year.

2. Did you deduct the amount escrowed or the amount paid?  The amount escrowed could very well be more or even less than the actual amount paid.  Your lender should send you an official statement that lists the actual taxes paid, make sure you use this number instead of just adding up the amount escrowed each month.

3. Did you deduct points paid to refinance? Instead of deducting points in total the year you refinance like you were able to the year you bought your home, you must deduct them over the life of your new loan.

4. Did you deduct your Private Mortgage Insurance? If you put less than 20% down on your home, your lender requires you to purchase Private Mortgage Insurance (PMI).  Don’t miss this tax deduction!

5. Did you deduct for your home office? Be careful, this deduction may not actually be worth your while.  Not only does it usually not add up to much of a deduction, but it also must be recaptured if you profit when selling your home.  It also can cause the IRS to take a special interest in your return.  Can end up as more trouble than its worth.

For a more in-depth description and mistakes 6-10 check out the article on Houselogic.com!!  This site also has some great tips on how to improve or maintain your home!

If you don’t yet own your own home, think of all the tax deductions you’re missing! Give me a call and we can start searching for your 2011 “tax deductions” now!