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.
|Mortgage Interest||Interest 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.|
|Points||Fees 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 Interest||Loan 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 Interest||Interest 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 Deduction||When 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 Taxes||The real-estate taxes.||Property taxes are fully deductible from your income.|
|Mortgage Tax Credit||A 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 Costs||If 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 Exclusion||This 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 Costs||Costs 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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