Tax time...that least wonderful time of the year. I am not a tax-expert -- I don't even play one on TV -- but here are a few new housing-related opportunities to save on your taxes this year that I have read about and would like to share with you:
First-time homebuyers: A first-time home buyer (or someone who has had no ownership interest in a prinicpal residence within the past three years) can take a one-time credit of 10 percent of the purchase price of a new home, up to $7,500 for a couple and $3,750 for an indivual. The house must have been purchased between April 9, 2008 and July 1, 2009.
In order to qualify, a couples' adjusted gross income may not exceed $150,000, for single's that amount is $75,000. Additionally, the tax credit actually takes the form of an interest-free loan that must be paid back within 15 years.
Energy credits: Up to 30 percent of the cost of certain improvements with caps of $500 up to $2,000, depending on the improvement. Solar electric power and water heating, wind energy, and geo-thermal heat pumps all qualify, plus installation costs all qualify.
Widows and widowers: Under the old tax codes, couples were able to exclude gains of up to $500,000 when they sold their principal residence, provided they had lived there two out of the previous five years. For single-filers, the limit was $250,000. As of 2008, a surviving spouse can claim up to $500,000 if the sale occurs within two years of the death of a spouse.
Be sure to consult your tax professional about these and any other tax advantages you may qualify for as a homeowner.
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