Benefits of Homeownership at Tax Time

Reblogger Debbie Reynolds
Real Estate Agent with Platinum Properties TN Broker: 208698

This is an especially good time to consider homeownership with tax refunds coming to many.  

 

Benefits of Homeownership at Tax Time

 

It's tax time ... 

And that means it's time for you to gather all of those envelopes recently mailed to your home marked "Tax Documents Enclosed" and file your taxes for the year. 

If you became a new homeowner during the previous year ...

Your real estate professional and lender probably told you at the time of purchase that homeownership comes with tax benefits.  Well, now's the time to flex those tax benefit muscles.

If you closed your loan via my mortgage services during the previous year, you should have received a copy/CD of your Mortgage Closing Disclosure at the end of January.  Much of the information you'll need to prepare your taxes and maximize your tax benefits is available on that Disclosure.

Whether preparing and filing your own tax returns ... or paying to have them prepared for you by a professional tax preparer, it's wise to fully-educate yourself to the tax deductions available to you before you start.  That's especially true when you're a homeowner.

Please Note here:  I am a Mortgage Originator, not an accountant or professional tax preparer.  The information I provide below is to be used only as an alert and source of reference for mortgage-holding homeowners ... not construed as professional advice.  

Should you have questions or be in need of tax and filing advice, please seek the services of a licensed/registered tax preparer.  (If in need of a referral for a tax professional in the Will County - Chicago Southland area, please contact me.  I'll be happy to provide a referral to a qualified tax professional.

That said, if you're a new or mortgage-holding homeowner ... 

What are some of the tax deductions you may be entitled to?  

  • Property Taxes:  City or State property taxes should be deductible.  

       If a new homeowner: Consult with a Tax Adviser as to the ability to deduct any Prorated Real Estate taxes from the date of your Closing on.(Understanding that a Homeowners pays Real Estate Taxes in arrears for the previous Calendar year in the Chicagoland Area and Collar Counties.)  If taxes were paid at that time, the dollar amount should be noted on your Disclosure Statement.

 

  • Mortgage Interest paid during the year:  You should have received a form   (Form 1098) or something similar from your mortgage holder.  The Form will typically break down the monies paid during the year, any deductible points paid (including those seller-paid), and if/when paid, mortgage insurance premiums.

     If the home is a Second Home or Investment Property:
     Mortgage Interest can still be deducted, within guideline limits.

  • If the Mortgage closed was a Refinance:  You can still claim the interest as a deduction, but you will have to meet certain criteria to do it.  That criteria may include spreading the deduction out over a defined number of years or over the life of the loan.

The Points paid during your Refinance may also come into play, but prorations will be figured and utilized for tax deductions.

  • Points paid at the time of Closing:  These points could take the form of Discount Points or Origination Points. They also can include those Points paid for you by your Seller at the time of your Closing.
  • Mortgage Insurance Premiums:  (For those policies issued after 2006)  

    Mortgage Insurance Premiums that qualify include those provided by the:


       *  Dept. of Veteran Affairs (a/k/a Funding Fee)
       *  FHA - Federal Housing Administration 
       *  Rural Housing Service - USDA (a/k/a Guarantee Fee)
       *  Private mortgage insurance

  • The Internal Revenue Service (IRS) allows First-Time Home Buyers (if married, both spouses) to make penalty-free withdrawals from their traditional IRA (or Roth IRA) up to $10,000/each.

    The IRS also allows their parent, a child, or grandchild to contribute ... with the total contribution allowed being $20,000.  

  • Moving Fees:  Deductions may be allowed for some moving fees ... if the move was facilitated by a change of employment or new job position.  Specific IRS requirements must be met in order to use this deduction.  (Please inquire with your tax preparer as to these requirements or see IRS Publication 521 regarding Moving Expenses)
  • Transfer Taxes:  Transfer Taxes, if paid, can be written off.


Again:  The information above is meant to be used only as a tool and to alert you to deductions and possible monetary savings you may be allowed.  Hopefully, it also assists you in your own tax research or serves as a roadmap when asking questions of your tax professional. 

Bottomline, the good news is this:  If you're thinking of buying a home soon or in the future, there are savings (tax and otherwise) to be found when you buy, finance, and own a home.  

The first step to discovering the possibilities that exist for you when buying or refinancing in the Will County, Chicagoland, IL (and WI) area?  Contact me ... or your own local Lender.  I'll be happy to answer all your questions and assist you with your financing needs.

And please don't forget:  The deadline for filing 2016 Federal Income Tax Returns is April 18th, 2017 ...

Read:  How Your Tax Refund can Help You Become a Chicagoland Home Buyer

 Contact Me!
 
 
* Hoping to Buy or Refinance a Home in New Lenox, Will County, or elsewhere in the Chicagoland area? Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
 
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
 
American Portfolio Mortgage Corp.
 
nmls #175656
 
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
 

  

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  

    

 

Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
3,830,649
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good afternoon Debbie Reynolds,

Love this post by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi . Thank you for re-blogging I missed it.

Feb 19, 2017 11:32 AM #1
Rainmaker
3,209,384
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debbie what a great re-blog, we just bring all the documents to our Accountant and let him figure out what is the best for us:))Endre

Feb 19, 2017 11:45 AM #2
Rainmaker
1,234,998
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Appreciate  your sharing this info with your readers and clients, Debbie Reynolds ... thank you!

Gene

Feb 19, 2017 12:17 PM #3
Rainmaker
1,944,150
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Debbie - this is always the good news.  It is that time of year that the first time home owners see the benefits.

Feb 19, 2017 12:29 PM #4
Rainmaker
5,425,035
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent selection for a reblog and great information to share.

Feb 19, 2017 12:30 PM #5
Rainmaker
773,882
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Yes, a great reblog with essential information for tax time. -Kasey

Feb 19, 2017 02:16 PM #6
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Thanks Kasey & John Boles and the team at Jon Gosche Real Estate, LLC and I
 agree it is so timely.

Feb 19, 2017 08:15 PM #7
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Thanks so much and I appreciate you, Roy Kelley.

Feb 19, 2017 08:16 PM #8
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I dread this time of year and so many others look forward to the tax refund. I haven't seen one in many years, Grant Schneider.

Feb 19, 2017 08:17 PM #9
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Gene Riemenschneider and glad to share it again.

Feb 19, 2017 08:17 PM #10
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I am so thankful for my accountant, Endre Barath, Jr. Our taxes are complicated.

Feb 19, 2017 08:18 PM #11
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Thanks for the comment and glad you like Gene's post, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi.

Feb 19, 2017 08:19 PM #12
Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope renters will read this post and decide to buy a house. 

Feb 20, 2017 03:52 AM #13
Rainmaker
4,797,423
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the re-blog, Debbie.  Excellent tax information for homeowners.

Feb 20, 2017 04:47 AM #14
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This is a great time to look hard at buying, Gita Bantwal.

Feb 20, 2017 01:56 PM #15
Ambassador
3,983,177
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I am thankful there are still tax advantages for homeowners, Gabe Sanders.

Feb 20, 2017 01:57 PM #16
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
3,983,177

Debbie Reynolds

Your Dedicated Clarksville TN Real Estate Agent
Clarksville and Real Estate are my specialities! May I help you?
*
*
*
*
Spam prevention

Additional Information