Friday, February 6, 2015

12 Tax Deductions & Credits For Homeowners

Ann Nguyn for Active Rain writes:  It’s that time of year when Tahoe and Truckee homeowners' mailboxes are stuffed with W-2’s, 1099’s and 1098’s, and accountants across America are hunkering down for long hours of number-crunching. With Income Tax Season officially upon us, there’s no better opportunity as a homeowner to see if you are taking advantage of lightening your tax burden by every cent that Uncle Sam will allow. My associate, Valerie Brinker, compiled a list of tax deductions and credits that you may be able to take advantage of for 2014 along with links:

1.  Mortgage Interest on Primary or Seco nd Home
2.    Primary Mortgage Insurance (PMI) 8)
3.   Points (page 5)
4.   Interest on a Home Improvement Loan or Equity Line (page 10)
5.    Property Taxes
6.    Home Office Deduction (if used as office or storage for business). New simplified deduction started for tax year 2013 or the regular deduction  
7.    Selling Costs
8.   Capital gains exclusion  (page 10)
9.   Moving Costs for job (minimum 50 miles)
10.   Mortgage income tax credit (MCC) for low/middle income earners who are first- time homebuyers (no primary home interest within 3 years) with low to moderate income. Certificate must be obtained during the original purchase through a lender approved by and trained for the program. In CA:
11.   The Residential Energy Efficient Property Credit (exp Dec 31st, 2016)
12.   The Nonbusiness Energy Property Credit (extended through Dec 31st, 2014 but this IRS link has not been updated to reflect that as of 1/31/15)

For a detailed explanation of the income tax deductions available to homeowners, please see IRS Publication 530: