5 TAX, TRICKS & TRAPS for HOMEOWNERS
(1) You Have to Itemize Your Return to Claim Your Deductions. 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. (2) Plan Ahead & Be Strategic When Taking a Home Office Deduction, but cannot take that space as a deduction when you sell. (3) Tax Relief for Loan Modifications, Short Sales & Foreclosures is ONLY around through 2012. IRS figures this on Cancellation of Debt Income or CODI. Must act now as months to go thru these procedures. (4) Project the Income Tax Consequences of a Refinance or Property Tax Appeal. As you lower your monthly payment, you also lower your taxes & interest, which are your largest deductions. (5) Don’t Forget Those Closing Costs. Origination fees or discount points are tax deductible. Refer to your HUD-1 settlement statement to find these fees.