Which home-related expenses are tax deductible? Tips for homeowners in Roanoke, VA.

Which home-related expenses are tax deductible? Tips for homeowners in Roanoke, VA.

We all need to save as much as possible in these tough economic times, so here are a few tips that might ease your tax burden at the end of the year.

 Mortgage interest and property tax are well-known deductions.  Here are some others:

 •·         The interest on a home equity loan is fully tax deductible unless the balance on the original mortgage plus the equity loan is greater than the property's value. After that, it's on a sliding scale.

     •·         If you bought your home after Jan. 1, 2007, mortgage insurance is fully tax deductible if your income is $100,000 or less.

     •·         Mortgage interest and property taxes on a vacation home are deductible. Even an RV as long as it has cooking, sleeping and bathroom facilities.

     •·         If you paid points to get a better interest rate on any of your home loans, you can deduct the points in the year you paid them. If you refinance the home, points are deducted over the life of the mortgage.

     •·         If you changed jobs and had to move more than 50 miles and had to sell a home because of the move, moving expenses are deductible unless reimbursed by an employer.

 If your home has been damaged by a natural disaster such as fire, hurricane or flood, some of the bills for renovating the property that was not covered by insurance can be deducted. Check with your tax preparer for more information.