Tax Deductions For Homeowners aren't complicated when you have the right tax preparer. I am a Certified Registered Tax Preparer qualified to provide this information, unlike Lyn Sims I wear multiple hats. If you have questions about your tax deductions for homeowners or other real estate or tax questions call me today for a free consultation. Everyone wants their refund now, make your tax appointment today, times are filing up very quickly.
What You Can and Cannot Deduct
To deduct expenses of owning a home, you must file Form 1040 and itemize your deductions on Schedule A (Form 1040). If you itemize, you cannot take the standard deduction. The standard deductions for 2011 are:
Single: $5,800
Married Filing Joint & Qualified Widower: $11,600
Married Filing Separate: $5,800
Head of Household: $8,500
Tax deductions for homeowners are one of the perks to owning a home besides long term stability and wealth building. There are four main tax deductions for homeowners they are real estate taxes actually paid to the taxing authority, sales taxes, interest that qualifies as home mortgage interest, and mortgage insurance premiums. These will be discussed in more detail in later bogs.
Some nondeductible expenses that may be included in your house payment include:
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Fire or homeowner's insurance premiums, and
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The amount applied to reduce the principal of the mortgage.
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Insurance (other than mortgage insurance premiums), including fire and comprehensive coverage, and title insurance.
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Wages you pay for domestic help.
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Depreciation.
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The cost of utilities, such as gas, electricity, or water.- This can be deducted if you are using the Office in Home deduction. If you have a place in your home dedicated to your business you can deduct a portion of these expenses.
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Most closing cost
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Forfeited deposits, down payments, or earnest money.
Follow this chart to see if the Points you paid are tax deductible
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