Homeownership-related tax deductions can prove advantageous in lowering your tax bill. HouseLogic lists some of the ways homeownership helps at tax time:
Mortgage interest deduction: Itemizing homeowners can deduct the interest they pay on their mortgage up to $1 million—or $500,000 if married but filing separately. The deductions can be made for loans issued to buy, build, or improve your home, and can apply to a house, trailer, or boat as long as it serves as your residence. A second mortgage, home equity loan, or home equity loan of credit to improve your home or buy a second home can also be included toward that $1 million limit.
Property tax deduction: The real estate property taxes paid can be another chunk of a deduction. For homeowners who purchased a home this year, they’ll want to check their HUD-1 settlement statement to see if they paid any property taxes when they closed on the purchase of the home.
Prepaid interest deduction: The prepaid interest, or points you paid when you took out your mortgage, is also deductible in the year you paid it too. This could apply to homeowners who refinanced their mortgage and used the money for home improvements. You can also deduct the points if you refinanced to get a better mortgage rate or shortened the length of your mortgage, but the deduction of the points must be over the life of your mortgage. See an example at HouseLogic.com.
PMI and FHA mortgage insurance premiums: The costs of private mortgage insurance can be deducted on loans taken out in 2007 or later. There are some stipulations, particularly if your adjusted gross income is more than $100,000, on how much you can deduct. Government insurance from the FHA, VA, and Rural Housing Service can also be deducted, but varies among agencies.
Vacation-home tax deductions: If the vacation home is used only by you, you can deduct the mortgage interest and real estate taxes. That means the home is not rented out for more than 14 days a year. If the home is rented out for more than that and used by yourself for less than 15 days, the home is classified like a rental property. Expenses are then deducted on IRS form Schedule E.
Team Olsewski’s uses a team approach to help individuals sell, buy or invest in Real Estate; they are also experienced short sale specialists. They offer an extensive internet based marketing program that sets us apart from other agents.
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Team Olsewski has multiple dedicated buyer’s agents who work exclusively with our buyers. This maximizes the home buying process thus insuring our buyers have the best possible home buying experience.
We service the Temecula, Murrieta, Winchester, French Valley, Menifee, Wildomar, Hemet, Perris, Moreno Valley, Lake Elsinore, and Corona area’s of Southwest Riverside County.
Whether you are looking for the perfect home to suit your lifestyle or want to sell your home quickly and at the highest value, Team Olsewski is the real estate Team for you. Working with you as a team, they will help you achieve your long-term and short-term goals. Team Olsewski brings the full range of their talents to make the most out of your largest investment, your home.Call them today!
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Some Highlights: The Cost of Waiting to Buy is defined as t
"With the way the market had been when we originally began the process of selling our home we were going to have to do a short sale. After doing some research online, we found that the VA has a compromise sale program that will save military members a lot of heartache. We originally selected Tom because he was the only realtor in the area that had discussed this process, had the knowledge, and was understanding of our situation. Even as the market value of our home increased, Tom was there to help us out and renegotiate the sale of our home. At the end of the sale we ended up making money, vice losing money and having our credit affected. Our interaction with Tom was nothing but professional throughout the entire process. He was always available and able to immediately answer all of our concerns, or find the right answer for us. Regardless of the situation you find yourself in, we highly recommend Tom for all of your home buying and selling needs, especially for the military members of this community."