Tax Tips For The Homewoner Tag Archives | Page 2 of 2 | Southwest Florida Real Estate from Sandra Rubinstein

Tax Tips For The Homeowner: Property Tax Deductions (Part 3)

Published on March 14, 2015 by Sandra Rubinstein

1. You can deduct your Property Taxes for the year you are filing on the IRS Itemized Deduction “Schedule A” form.

2. If you purchased a home this year (2014) check your HUD-1 (the financial Seller & Buyer closing statement document) to see if you were charged when you closed on the purchase of your home. This charge may be used as a deduction on the IRS Schedule A Itemized Deduction Form.

3. If your Property Taxes are escrowed in your Mortgage payments the Real Estate Property Taxes you paid may be verified on your Annual Escrow Statement and then deducted on Schedule A.

Tax Tips For The Homeowner: PMI & FHA Mortgage Insurance Premiums (Part 2)

Published on March 11, 2015 by Sandra Rubinstein

Welcome to Part 2.

What is PMI? If you have a mortgage that has NOT been secured by at least a 20% down payment of the appraised value or sale price, your lender will require that the mortgage to be insured against the possibility of the default of the payments on the loan.

So how does this charge translate on your tax return?

1. On loans taken out from 2007 or later, you may deduct this monthly charge, that is part of your monthly payment, on Schedule A of your itemized return.

***Please note, unless Congress renews the deduction, 2014 will be the last year that this tax deduction will be eligible (Please check with your Tax Advisor for the status of the deduction)

a. If your adjusted gross income is more than $100,000.00 your deduction is reduced by 10% on each $1000.00 ($500.00 for individuals that are married but filing separately) example: if you are making $110,000.00 or more the deduction may not be claimed.

2. There are government insurance fees for loans funded by the FHA, VA & the Rural Housing Services agencies. Some of the fees may be paid in full at time of closing. As their deductions may be complicated and dependent on various contingencies & vary form agency to agency, it is best to consult a tax advisor or other professional resource.

Please check back for Part 3: Prepaid Interest Deduction

Tax Tips For The Homeowner {Part One}

Published on March 10, 2015 by Sandra Rubinstein

Here the most up to date information on your homeowners mortgage interest deductions for you to take advantage of that can be documented on your “Schedule A” of your Federal Tax Returns. Please do not forget a “home” {that is secured by your mortgage} may be a house, a trailer, or a boat-as long as you can sleep in it, cook in it & it has a toilet.

1. Interest on a mortgage that is charged ($1.0m or $500.0k if married filing separately)is deductible if the loan is used to buy, build, or improve a residence. A second mortgage, including a home equity loan or line of credit, to improve your current residence or to purchase a second home, that will be included towards the $1.0m cap.

2. If loans secured by your residence, including sending a child to college, you may still deduct the interest on these secured loans up to $100.0k ($50.0k if married filing separately) because your home (your collateral) is securing the loan.

Please check back soon: My next “Tax Tip For The Homeowner’ will cover ‘Private Mortgage Insurance (PMI) & Federal Housing Association (FHA) Mortgage Insurance Premiums

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