Yes, you heard it right. The tax man cometh, but not to worry...if you bought your home in 2007, you are about to reap the rewards of homeownership.
Your Payoff Date is Finally Here!
You didn't have to buy a house or condo just in Sacramento. You had to buy a house of condo anywhere in 2007.
Not only do you own your very first home as a new homeowner but there are some great surprise deductions that you can take as a new home buyer that turned you into a new homeowner.
Real Estate is King when tax time comes...some are one time only deductions and others can be deducted every year.
If you paid points when getting your real estate mortgage loan, in the tax year you purchased your house or condo and even if the seller paid your points, you may be able to deduct that amount.
Loan originations fees that you paid on your mortgage loan for your condo or house and even if the seller paid them, may also be considered as a deduction.
The mortgage insurance premium is yet another fee associated with your condo or house that may be considered as a deduction. This deduction is subject to your adjusted gross income.
And of course for everyone that owns a home or condo, the interest paid on your mortgage loan is considered as a deduction up to $1 million on a mortgage. Equity lines of credit where interest is paid is also a consideration for deduction. And for those lucky home owners who own a second home, the interest paid on that loan may also be a deduction.
Property taxes are a deduction as well. Remember to look at the tax bill carefully to make sure that the taxes being paid are in fact the correct amount. This is a good time to double check the figures as mistakes are often made.
Additionally home improvements made due to medical care are also considered a deduction. Even if you made home improvements be sure to keep those receipts for later on when you sell your home.
As always, be sure to check with your tax consultant to verify these deductions or go to IRS Homeownership Tax Deduction publication to read further about moving expenses and if you qualify.
Enjoy the benefit of homeownership now and for many years to come.
For those thinking of buying a home or condo this year or a second home, be sure to read all the many deductions that you are awaiting you for paying taxes next year.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe 
to get the latest articles sent to your email.
If you are thinking of relocating as a home buyer or simply considering selling your house, be sure to check a FREE Sacramento MLS of homes for sale.
Other Real Estate Tips:
Dress Your Home to Sell-Inside Home Seller Tips
Dress Your Home to Sell-Outside Home Seller Tips
Home Buyers, Do You Remember Being in School?
Real Estate is Not Just a House
Sacramento Realtor Talks to Home Buyers
If Mama Ain't Happy, Nobody's Happy!
Baby Steps When Buying a House
Real Estate Trends for 2008-What's Hot, What's Not
What are the ABC/s of Buying a HoUse?
New Home Buyer Information You Need to Read
Property Taxes-Something for Homeowners to Consider
Homeowner Tips and Home Buyer Tips
 |
|
|
Sacramento Real Estate serving Home Buyers & Sellers in Elk Grove, CA, Folsom, Roseville,, Granite Bay ,Placer County, El Dorado Hills, West Sacramento, love 1st Time Home buyers, too. (916) 417-2699
What Bank Owned Foreclosed Homes Look Like
Luxury Homes Suffer Foreclosure, Too
Sometimes A Realtor Needs to Give A Hug
Don't Miss the Taste of Land Park Here in Sacramento
Holy Moley, What a Home Showing
Proof That Banks Are Screwing Themselves
Sacramento Year to Date Home Sales
Sacramento Area Foreclosure Homes-Bank Owned Homes-REO Homes For Sale
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
You are right, the tax deductions are great. The IRS is quite liberal with the deductions available for real estate.
Hi Judge Gena, you post are always so classy looking...kinda like you come to think about it :). I left you a little note over on my post about the contest and mascot when you get time. Great information for your clients. Liz
Hi Gena - I see you have been very busy blogging! This is really good advice for homeowners. Keep it up.
Rob, the new home buyer needs to know what they are missing. Real Estate is just another key to wonderful deductions.
Liz, thanks for popping in...always looking to help the homeowner and let the new home buyer know what is in store for them. I'll bee bop on over to the TX group and check it out.
Georgina, thanks. It's great to see you. Still in search for that great banana pie.
Aloha Gena!
Thank you vey much for your response to my post about open houses. Also, found this post about taxes and I am impressed how thorough you are. I have a question for you though: If someone refinances their home, do they get a deduction for the whole amount of interest ? I heard someone saying smth to the effect that if one bought a house and has a mortgage for $200,000, later on refinanced and thus they owe 300,000 to the bank, they can only deduct the portion of interest on the initial 200,000.have you heard anything like this?
Thanks again,
Mihaela
Gena, This is a really good Localism post. I hope it brings you many clients.
Bill Roberts
Michaela, you are most welcome. It was my pleasure. I am not a tax consultant however, it is my understanding that on a refi deductions are taken over the course of the loan. This would need to be verified by a tax consultant, though. Since income levels, home ownership, grandfathered debt etc are involved it is a complex issue and needs to be addressed individually.
Bill, thank you. I hope so too. But, more importantly I hope that it serves to remind those new homeowners what their deductions are and to those thinking of buying a house or condo, the rewards of home ownership.
The tax deductions are nice. Its too bad you can't deduct the rest of your living expenses as well. -Charles
Charles, better check with your tax consultant for more deductions you may be missing a few.