- Homeowners should be aware of these tax breaks that they may be eligible to receive.
- Mortgage interest: Homeowners are generally entitled to reduce their taxable income by the amount of mortgage interest they pay, as long as they itemize deductions on their tax returns.
- Private mortgage insurance: Homeowners who are paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income is $100,000 or less ($50,000 for married taxpayers filing separately). Borrowers with incomes above $100,000 may qualify for a partial deduction.
- Energy-efficient home improvements: If windows, doors, or skylights that meet the requirements of the federal Energy Star program were installed in 2011, homeowners can get a tax credit equal to 10 percent of the product’s costs.
- Points: The charges a borrower paid in points to get a mortgage are generally deductible if it was a first mortgage on the property. In the case of a refinance loan, all or some of the point charges might be deductible, but it gets complicated.
- Property taxes: The amount paid in property taxes is deductible as long as it is based on the assessed value of the property. If the mortgage company collects money for property taxes, the amount actually paid should be on the 1098 form lenders send out each January.
Please seek legal or tax advise from a professional Tax Consultant or CPA to confirm any of the information provided.
More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau!
If you have equity in your home, we will sell your home and get top dollar in this challenging market with our Internet Marketing and Sales Program or click Want to know what your home is worth? .
If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also, go to www.ShortSaleRealtors4U.com
New Pro-Property Search. We will setup a customized search for you by our professional REALTOR® Team. Sit back relax and shop at home! We will make changes to your Pro-Property Search any time you like, just let us know. Have fun!
Want to know what your home is worth?
[iframe http://tools.1parkplace.com/valueWizard/vluredirect.aspx?userid=47042 780 1100]