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 IRS.gov links:

1.  Mortgage Interest on Primary or Seco nd Home   http://www.irs.gov/pub/irs-pdf/p936.pdf
2.    Primary Mortgage Insurance (PMI)  http://www.irs.gov/pub/irs-pdf/p936.pdf(page 8)
3.   Points  http://www.irs.gov/pub/irs-pdf/p936.pdf (page 5)
4.   Interest on a Home Improvement Loan or Equity Linehttp://www.irs.gov/pub/irs-pdf/p936.pdf (page 10)
5.    Property Taxes http://www.irs.gov/taxtopics/tc503.html
6.    Home Office Deduction (if used as office or storage for business). New simplified deduction started for tax year 2013 http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Simplified-Option-for-Home-Office-Deduction or the regular deduction  http://www.irs.gov/pub/irs-pdf/p587.pdf  
7.    Selling Costs http://www.irs.gov/pub/irs-pdf/p523.pdf
8.   Capital gains exclusion http://www.irs.gov/pub/irs-pdf/p523.pdf  (page 10)
9.   Moving Costs for job (minimum 50 miles) http://www.irs.gov/pub/irs-pdf/p521.pdf
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:http://www.calhfa.ca.gov/homebuyer/programs/mcc.htm
11.   The Residential Energy Efficient Property Credit (exp Dec 31st, 2016)http://www.irs.gov/pub/irs-pdf/f5695.pdf
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)http://www.irs.gov/uac/Newsroom/Energy-Efficient-Home-Improvements-Can-Lower-Your-Taxes

For a detailed explanation of the income tax deductions available to homeowners, please see IRS Publication 530:  http://www.irs.gov/pub/irs-pdf/p530.pdf

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