Tax Season Tips for Home Owners
Reading an article in a trade magazine got me to thinking about those I sold homes to last year. With taxes being due in little over a month I thought I would share a few tips.Owning your own home opens the door to many tax opportunities. We suggests these several ways to save on your tax return:
- If you bought a home last year, you may benefit from a refundable first-time home buyers’ credit of 10% of the purchase price of a new home—up to $8,000. The credit is available for homes purchased before October 1, 2010 and you must have entered into a binding agreement to buy the home before May 1, 2010. You can’t have had an ownership interest in a principal residence during the three years before the purchase.
- You can take the interest on your mortgage indebtedness of up to $1 million as an itemized deduction. The interest can be on your principal residence and one additional residence.
- If your lender forgave your mortgage debt of up to $2 million on your principal residence, as in a write-down or foreclosure, the transaction won’t be treated as “cancellation... ...read full post
