Williamsburg Homes: TAX BREAKS
Jan 25th, 2009 by admin
Tax Breaks
Most homeowners are keenly aware of the interest tax deduction on their home loan, but there are many other tax breaks which are often overlooked at income tax time. Pro-rated property taxes and mortgage interest in the year of sale are deductible. You will find these amounts listed on your closing settlement statement. If you paid off your mortgage and had to pay a pre-payment penalty, it qualifies as tax deductible interest. If you paid an “acquisition mortgage loan fee” on a home loan, this fee can be deducted as itemized interest. Home improvement loan fees are also deductible. Any remaining loan fees from re-financed or paid-off mortgages are fully deductible at the time of the mortgage payoff.
Certain items don’t qualify as deductions, but can be added to the cost basis of your home, such as transfer taxes, recording and title fees, and special local property tax assessments for new sidewalks, streets, or sewers.
Investors have additional tax breaks and savings can be substantial. Call us to find out more about investment property.
Don’t be intimidated by the tax code! A little research or consultation with an expert can help you maximize your real estate tax advantages.
We aren’t accountants or tax attorneys so be sure to check with your tax professional before making any decisions.
Troy Deierling, Realtor
EXIT Realty Deierling & Assoc.
Williamsburg, VA
(757) 715-4793 Mobile
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Licensed in the Commonwealth of Virginia
www.RealEstateWilliamsburg.com
www.WilliamsburgBroker.com
“Bringing you Home to Williamsburg”
©2009 Troy Deierling
