7 Tips for IRS Home Tax Breaks(Possibly?)

IRSThese tips are to remind home owners there are some advantages to owning your own home. You can hopefully help lower your tax bill with these ownership-related tax deductions and credits.

  1. Mortgage Interest Deductions – mortgage must be secured by your home(it can be house trailer or boat as long as you live, sleep, eat and it has a toilet.) “Schedule A”
  2. Private Mortgage Interest Deductions – ONLY applies to post 2007 mortgages and expires in 2013 otherwise know as PMI and included in low down payment mortgages – “Schedule A”
  3. Prepaid Interest Deductions – (Or Points) 100% of money you paid when you took out the mortgage is deductible – “IRS Form 1098” and “Schedule A”
  4. Energy Tax Credits – HAVC, Insulation, Roofs, Windows, Doors and Skylights could all qualify for dollar-for-dollar reductions – “Visit Energy Star website” and “IRS Form 5695”
  5. Vacation or Second Home Deductions – These rules are complicated and depending on the use of the property the forms differ.
  6. Property tax Deductions – Real estate property taxes. Check your escrow account records or if you bought this year check your HUD-1 Statement – Schedule A”
  7. ¬†Homebuyer Tax Credit for purchases made between 2008-2010 are now due for repayment. Do not panic!! It must be repaid 1/15th of the credit for 15 years, with no interest. This rule can get a little tricky to depending on which year you bought and if you are uniformed service member. Use this “IRS Tool” to find out more.

Please remember this article provides general information and should not be relied upon as tax or legal advice. Contact a local professional in your market area for help and guidance. Source: houselogic.com/home-advice/tax-deductions/home-tax-deductions/8/

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