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