The Cost Of Ownership

Now that you've had a chance to recover from filing your 2007 taxes, it is time to start thinking about ways to reduce your 2008 tax spending.  Most homeowners know they can deduct their mortgage interest from their primary residence if they itemize, but did you also know you can deduct mortgage interest for a secondary home, interest from a line of credit or a home equity loan?  You can also deduct state and local real estate taxes if the taxes are applied as a uniform rate on the assessed value of the property.  You may also be able to deduct Private Mortgage Insurance (PMI) premiums if you bought your house after January 1, 2007.  Don't forget-if you have completed any energy-efficient upgrades to your house (such as new windows, a new water heater, or new HVAC), you can also deduct a portion of these project costs.  Keep these potential deductions in mind as you plan your 2008 home improvement projects and real estate purchases.