Day 1 – Tax Tips for Homeowners

If you were a first-time homebuyer last year, here are some of the tax related deductions you can take off of your tax bill:

• Mortgage Interest Deduction
• PMI and FHA Mortgage Insurance Premium (MIP)
  • if you did not put at least 20% down payment, you are probably paying PMI
  • if you have an FHA loan, you are paying MIP– these are deductible costs, based on your income
• Prepaid Interest Deduction
  • when you got your mortgage, did you pay any “points”?
  • did you refinance this year to use the money for home improvements?
• Property Tax Deduction
  • you can deduct your property taxes (found on your escrow bank statement)
  • if you are a new homebuyer, check your HUD-1 statement to see if you paid any taxes when you purchased– you can deduct this amount also.
• Energy Efficiency Upgrades
  • did you update your windows, doors, skylights, roof, heating or cooling units?

For the full list and more details, click on the full article and talk to your local tax preparer.