10 Tax Benefits Checklist for Home Owners


From the time you buy a home until the day you sell, keep this checklist handy of the “10 Tax Benefits for Home Owners.” You will take full advantage of tax benefits for home ownership.

Deduction
Definition
Additional Tips
Mortgage InterestInterest you pay on your mortgage. PMI premiums are tax-deductible for mortgages taken out after 2006, but there is a phaseout based on your income.
PointsFees from the lender.You can fully deduct points associated with a home purchase mortgage. Refinanced mortgage points are also deductible, but only over the life of the loan, not all at once.
Home Improvement Loan InterestLoan to make "capital improvements" on home.Qualifying capital improvements are those that increase your home's value, prolong its life, or adapt it to new uses.
Equity Loan InterestInterest on your loan.Based on filing status and fair market value of the home, you may be able to deduct some of the interest you pay on a home equity loan or line of credit.
Home Office DeductionWhen a portion of your home is exclusively used for business purpose.Deduction may include a percentage of your insurance and repair costs, and depreciation.
Property TaxesThe real-estate taxes.Property taxes are fully deductible from your income.
Mortgage Tax CreditA home-buying program called mortgage credit certificate (MCC) allows low-income, first-time homebuyers to benefit from a mortgage interest tax credit of up to 20% of the mortgage interest payments made on a home.You must first apply for this credit through your local government office.
Moving CostsIf a new job promted a move, you may be able to deduct some of your moving costs.Your new job must be at least 50 miles farther from your old home than your old job was.
Capital Gains ExclusionThis relates to the profit on the sale of a home used as a principal residence for two of the prior five years.Married taxpayers can keep up too $500,000, tax free.
Selling CostsCosts associated with selling your home.Real estate broker's commissions, title insurance, legal fees, advertising costs, administrative costs, escrow fees, and inspection fees are all considered selling costs.

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