How Your Status as a New Homeowner Will Affect Your Taxes

Many new homeowners have the same question, "How will my status as a new homeowner affect my taxes?" and "What are some deductions I should be aware of?". Although I cannot provide specific directions on taxes, I can, however, tell you a few things you can deduct on your return to receive the full benefits of home ownership.

For the 2008 tax year, homeowners who do not itemize will be able to deduct property taxes up to $500 for single taxpayers and $1,000 for married couples filing jointly. This can be deducted on top of standard deductions.

Tax rules can be complex for many of us as they are always changing. It is best to consult with your tax professional to determine how deductions will apply in your situation.

Typically, itemizers can deduct interest paid on home mortgages, state and local property taxes, interest paid on home equity loans for credit lines, some or all private mortgage insurance premiums if your household income is under $109,000, and mortgage points.

Good luck in your new home and on your taxes. Be sure to ask your tax professional about these deductions so you can get the maximum on your tax refund.

IRS - www.irs.gov

Edmond, Oklahoma Real Estate

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Edmond, Oklahoma Realtor® Gordon Wynn