Gearing Up For the Upcoming Tax Season

I am still trying to wrap my arms around the idea that this year is all but over.  The new year will usher in the advent of another important tax filing season. 

Although we are keenly aware some homeowners are having difficulty paying their mortgages, it is important to realize the substantial tax benefits, which come with home ownership.

Here are some points to consider, and discuss with your tax professional:

• Mortgage interest on your home continues to be tax deductible.
  
• Property tax is also very much deductible.
  
• Home energy and tax savings - There can be Energy Tax Incentives, which offer taxpayers a tax credit for improvements made in making their home energy-efficient.  These amounts can reduce your tax bill based on the improvement(s) made.  The installation of dual pane windows; solar water-heating systems, addition to insulation, and the replacement of old inefficient air conditioning or heating systems.
  
• For some homeowners private mortgage insurance may be an expenditure that is deductible.
  
• If you own rental property, you may not only deduct the previous items, but also depreciation, insurance and repairs as well.  
  
• And of course for those of you who were able to take advantage of First Time Home Buyer Tax Credits, there will be the substantial tax savings coming your way.

I encourage you to openly discuss with your Tax Professional, all the benefits that come from home ownership during this important upcoming tax preparation season.