| Homeowners get some nice perks when it comes to | | | | years of receipts. |
| paying their income taxes. | | | | If you relocate because of your job, you could |
| With tax time less than one week away, don't | | | | qualify for a mortgage deduction. It doesn't have to |
| forget to make your homeownership work for you. | | | | be a new job. It could be your first job, a new job |
| You can often make deductions for repairs, | | | | or the same job. Your job office has to be at least |
| mortgage interest and home-offices. | | | | 50 miles away from where you live. |
| The most talked about deduction that homeowners | | | | You can deduct the moving van, any moving |
| receive involves the interest you pay on your home | | | | services, the cost of moving your vehicles, the use |
| mortgage. This deduction is used in many ways by | | | | of storage and any hotel rooms you stayed in during |
| brokers, lenders and real estate agents as a | | | | the actual move. |
| persuasion into owning a home. For the first years of | | | | If your home is damaged by a disaster or theft and |
| your mortgage, the deduction will probably be quite a | | | | you were not compensated by insurance, you may |
| bit of money. But remember that as time goes by, | | | | be able to receive a deduction on your taxes. The |
| your deduction will go down. | | | | un-reimbursed damage must be more than 10% of |
| Most mortgages front-load the interest payments. | | | | your adjusted gross income after you have |
| You pay more interest and less principal at first. With | | | | subtracted $100 from the un-reimbursed amount. But |
| time, the principal amount increases as the interest | | | | if you were a victim of Hurricane Katrina, there are |
| amount decreases. Think of it as a thirty-year teeter | | | | separate rules that govern you. You will also be able |
| totter. | | | | to amend last year's return and claim this year's loss. |
| At some point in the life of your mortgage, you may | | | | Check with your CPA for any additional information |
| realize that the interest isn't enough to help you out | | | | on damage deductions. |
| at tax time. You may even choose to go ahead and | | | | Home-office deductions can be tricky. You can only |
| pay off the mortgage entirely. Most loans do not | | | | use the office for one purpose -- your work. You |
| include prepayment penalties, but if yours does -- | | | | can't let your husband play computer games at your |
| they too may be tax deductible. | | | | desk or let your children use the space for |
| Until you sell a home, you don't realize how important | | | | homework. It must be treated like an office in a |
| it is to keep all those receipts for repairs on the | | | | traditional business would be used. |
| home. Keep every improvement or repair receipt. | | | | This deduction is based on the square footage of |
| When you sell the home, you can use these | | | | your home as compared to the square footage of |
| expenses to offset the profits you make on the sale. | | | | your home office. You can deduct the percentage |
| If you have to pay taxes on the profits, the receipts | | | | from your household bills. |
| will help you reduce those taxes. | | | | The key to getting all you can out of your tax |
| For example, you may put a new roof on the home | | | | deductions is knowing that they exist. Unfortunately, |
| or simply remodel the bathroom. It doesn't matter | | | | tax preparers don't always have the time to ask |
| the nature, the cost of the improvements can be | | | | about every deduction that could apply to you. You |
| added to the price you bought the home for. You | | | | must bring up everything you can to get what you |
| should keep a file especially for those receipts so | | | | deserve. |
| that you can find them without searching through | | | | |