Six Tax Saving Tips for Homeowners

6 Saving Tax Tips For Homeowners

PMI DeductionPMI, Private Mortgage Insurance, is the premium you have to pay every month until you have 20% equity in your home. It protects the lender if you default. Congress extended the tax break for PMI through 2014.

Mortgage Interest

A report estimates that American taxpayers take $70 billion in mortgage interest deductions annually.  Simply use Form 1098 if you have paid more than $600 in mortgage interest in the tax year.

Property damage can be tax deductible. The IRS grants a break to any property or casualty loss that is more than 10% of your gross income and is not reimbursed by your insurance.Form 4684 will help you sort out deductible losses.

Losses from weather, fire or theft

 Local real estate taxes

Many taxpayers overlook the fact that homeowners can deduct local, state and even foreign real estate taxes on their federal returns.  

Renovations save taxes at the time of saleMost renovations you make on your home are not tax deductible. BUT if you are over the tax-free profit of $250,000 allowed by the IRS on a primary residence, you can reduce the tax burden on those gains by proving your investment in the property through renovations and other work. Remember, documentation is key!

Selling costs also count

For those who sold a home in 2014, the commission paid to a real estate agent to sell it is also tax deductible, as are any legal fees and closing costs.

For More DetailsVisit

www.taxassistancegroup.orgor Call

(855) 549-7829

Work Cited: Reeves, Jeff. “7 Money-Saving Tax Tips for Homeowners. USA TODAY. Gannett Satellite Information Network, Inc., 4 April 2015. Web. 27 May 2015 <http://www.usatoday.com/story/money/personalfinance/2015/04/04/irs-taxes-homeowner/23938151/>.