As you prepare your taxes, think about how your home works for you as an investment and a tax savings. Here are some options for getting the most out of your investment this year. Axiom Financial does not provide tax advice and we encourage you to learn more about these subjects through the IRS or your own tax advisor.
Home Buyer Tax Credit
For those who took advantage of this program (some military and government employees may still be eligible), use IRS form 5405. It has all the information you need for claiming your home buyer tax credit.
Mortgage Insurance Premiums
Borrowers whose annual adjusted gross income is $100,000 or less may deduct their mortgage insurance premiums from their Federal tax return for homes purchased or refinanced. Borrowers with income between $100,000 and $109,000 may be eligible for a reduced tax break under law.
Mortgage Interest and Points
In most cases, the interest you pay on your mortgage is deductible. Points are prepaid interest on a mortgage and in most cases are deductible on your taxes the same as any other mortgage interest.
Other Deductions to Consider
Home sellers may be able to use the non-loan-related settlement costs they paid when purchasing a property to adjust their basis of value on their home sale. Sales Commissions, property taxes, abstract of title fees, utility services installation, legal fees, recording fees, surveys, owner's title insurance and more may be used to adjust the basis cost of the property.
Again, although Axiom Financial is not a tax advisor we do want our clients to get everything they can out of their home-buying experience and investment. Please be sure to contact your Axiom Mortgage Consultant for questions about your home investment. Contact your tax advisor for the latest information on the smartest way to use your home-related tax deductions.
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Dave Duke, Mortgage Consultant (Click on picture to go to my business page.)
