Well, its March 15 and we taxpayers only have 30 more days to file our tax returns. Besides having a wonderful places to live, the homes we’ve purchased, whether it is a house, co-op or condo, allows us to get the benefit of several tax deductions and tax credits. Here’s a list of tax credits and deductions available to homeowners for the 2009 tax season.
Mortgage Interest Deductions – If you took out a mortgage to purchase your home, or you have a Home Equity Line of Credit, then each month you are paying interest to a lending institution. That interest that you’re paying is tax deductible. In order to take the deduction you will have to itemize on your tax return. What you will need to take the deduction is form 1098 that you should have received from your lending institution, and the schedule A form to file with your 1040 or 1040A.
Real Estate Taxes – You can also write off the real estate taxes you pay on your property. What you will need to take the .
deduction is the amount of real estate taxes you paid for the year (if you have a mortgage the amount should be included on form 1098) and again you will have to itemize (use form schedule A).
First-time Homebuyer Tax Credit – If you did not own a home in the 3 years prior to buying one in 2009 or you purchased a home in 2010 (you must be in contract on or before April 30, 2010) then you may qualify for an $8000 First-time Homebuyer Tax Credit. The credit is fully refundable meaning that if you don’t owe the IRS any monies, you may receive the entire $8000 in cash.
For more information on this credit and the form you’ll need to file it, go to the First-Time Homebuyer Credit Questions and Answers Pageon the IRS’s website.
Move-Up Buyer Tax Credit – If you have sold the home you lived in for five consecutive years of the last eight years and purchased a new one between November 7, 2009 and July 1, 2010 (you must be in contract on or before April 30, 2010) then you may qualify for a credit of up to $6,500.
For more information on this credit and the form you’ll need to file to get it, go to the First-Time Homebuyer Credit Questions and Answers Pageon the IRS’s website.
Residential Energy Property Credit - If you’ve made energy efficient improvements to your existing home, you can get a credit of up to $1,500. What are some of the improvements that qualify? Take a look at the Energy Star.gov Website for more information.
As you can see from the tax credits and deductions above, owning a home can really benefit your pocket when tax season rolls around. Be sure to consult with your tax profession to make sure you get all of the tax breaks you deserve.
