Fort Lauderdale

7 Homeowner Tax Advantages

By: G. M. Filisko

When you’re evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership.

You can claim some tax deductions if you work from home, but be sure you’re entitled to them before taking them.

Owning your home not only allows you to build wealth through appreciation, but it can also reduce the amount of income tax you pay every year.

Here are seven tax benefits for homeowners.

1. Homebuyer tax credits

If you purchase your first home before April 30, 2010, you’re entitled to a tax credit of up to $8,000. If you currently own a home, but sell it to purchase another home before April 30, 2010, you’re eligible for a federal tax credit of up to $6,500.

2. Deductions for loan fees

Typically, you can deduct the “prepaid interest” you paid when you got your mortgage loan. That includes points, loan origination fees, and loan discount fees listed on your settlement statement, even if the seller paid those fees for you. Each time you refinance your home, you can deduct prepaid interest fees.

However, you must meet certain requirements to take the prepaid interest deductions when you purchase or refinance your home. Check with your accountant to be sure you’re following the rules.

3. Property tax deductions

In the year you purchase your home, you’re entitled to deduct the real estate taxes you paid at the closing table. You can continue to deduct the property taxes you pay each year.

4. The mortgage interest deduction

Every year, you can deduct the amount of interest and late charges you pay on your mortgage and home equity loans, though there are limitations. If you’re required to purchase private mortgage insurance (PMI) because you made a downpayment of less than 20% on your home, you can also deduct those premiums as mortgage interest expenses.

5. Home office expenses

If you have a home office you use only for business, you may be eligible to deduct the prorated costs of your mortgage, insurance, and other expenses related to that space. The government scrutinizes home-office deductions closely. Be sure you’re entitled to the deductions before claiming them.

6. The costs of selling your home

In the year you sell your home, you can deduct the costs of selling it, including real estate commissions, title insurance, legal fees, advertising, administrative costs, and inspection fees. You can also deduct decorating or repair costs you incur in the 90 days before you sell your home.

7. The gain on your home

If you lived in your home for at least two of the previous five years before you sell it, the government lets you to take up to $250,000 of profit on the sale of your home tax free. That amount is doubled for married couples. This deduction isn’t available on rental or second homes.

The government also allows you to subtract from your home sale profit any amounts you spend on improvements, such as window replacement, siding, or a kitchen remodel. Those deductions are in addition to the tax credits you can receive in 2010 for making energy-saving upgrades. Money invested for routine maintenance and repairs doesn’t count.

This article includes general information about tax laws and consequences, but is not intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws vary by jurisdiction.

Loft living your desire? Be sure to be one of the first to see this unit. Two bedroom, Fifth floor, east view location. Directly across form a shopping center with all you need.  2007 Construction. Cutting edge design, spacious with high ceilings. Short Sale Offering @ $ 159,000. Located in the city of Miami, 1791 Miami Gardens Dr . MLS # F1076550. See more at www.Debracaro.com

Arriving Home

Waterfront lot is over 35,000 feet. A dream come true, hidden in Trails of El Rancho. Owner just reduced pricing, ready to move on. Now offered at $625,000. Tons of features you’ll want are already here. Impact windows, newer roof, heated screened pool, fireplaces, wood flooring, to mention a few. Neighborly but private setting.

Southwest Ranches is just a skip away from Everglades and it’s recreation areas. Rural living but so close to all you need.  Airport 25 minutes, I75  and Sawgrass Expressways less than 10 minutes, Davie college campus area within 15 minutes.

Don’t get too excited. If the owner see how much you want this they are liable to raise the price. Desirable Harbor View Condo, refurbished 2/2. Situated with views of the canal and tropical pool area.  Just drive that boat right up, almost to your back door. Cruise down the block to www.15streetfisheries.com , relax and enjoy your meal.  Take a leasure ride or catch the big one to bring home and share with friends.

If you have a bit of energy, head over to www.visitflorida.com/Fort_Lauderdale, see what’s happening today. Join in on the activities. Take a stroll on the beach, try some neighboring shopping.

Located at 1535 SE 15 Street Ft Lauderdale, Florida. It’s happening all around this property. Be one of the first to see. Contact me at caro.d@ewm.com. It’s a short sale, unfortunate for seller but your gain. Offered at $275,000.

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The home listed is a spacious 2 bedroom 2 bath on a cul-d-sac lot. Wood flooring, an enclosed old time Florida Room, eat in kitchen, walk in closets and a single car garage. Offered at only $272,000. Maintenance is a mere $287.00 per month. Quiet neighborhood that is yet close to shopping, houses of worship, hospitals, governmental offices, major roadways, entertainment facilities and many eateries. See more photos for this listing F993702. You can find me at www.debracaro.com.

Plantation opened to the public its refurbished golf course and linear park, Plantation Preserve.  The 211-acre parcel includes a 7,000 yard, par 72 championship golf courses, a 6,600 square foot club house that seats 160 guests, a linear park trail with two trailheads that will wind its way through the golf course and 29 acres of wetland preserve. You can learn more about the course and it’s facilities by going to www.Plantation.org

Welcome to what could be your private retreat!  Truly pride of ownership will be apparent to you. Private, cul-d-sac, lakefront lot, over 35,000 square foot, is the setting for this custom four bedroom, three bath home. Real wood flooring, split bedrooms, tray ceilings, fireplaces, wood cabinets, granite and stainless appliances are just a glimpse of the many features of this home.

After swimming in the pool, children need room to play? Spacious yard will accommodate a playground easily. Into animals?  Horses allowed.  Just want to be left alone?  That can be arranged as well. Entertainment on your agenda?  Spacious floor plan and patio area will serve you well.

Only minutes to county parks, Everglades Recreation areas, major expressways, Cleveland Clinic Hospital, colleges, library, schools and shopping. You will feel like you are in a distant suburb and surprised how close to everything you are.

Arriving Home

What are you waiting for?  Interest rates are still low. Seller decision on pricing . First time offered. Original owner. Offered at $659,900.