Home Owner Tax Breaks Often Overlooked

State Sales tax on materials purchased to repair your home...
Depending upon where you live, if your state has sales tax already this deduction could amount to an even larger chunk of money as it gets added on top of any state income tax deduction. You can visit the IRS website for help using their online calculator to figure this deduction.

Refinancing points...
In contrast to when you purchase a home and are allowed a single large deduction for the mortgage, when you refinance, you will deduct over the life of the loan. So for instance, your annual deduction on a 20 year loan, will be 1/20th of the points.

It may not seem like very much, but it is important to deduct it anyway. If you sell the house before the refinance loan period is completed, you are allowed to deduct any remaining points all at once upon filing after the sale. Also, if you refinance your refinance loan, any points you incur under the new loan, will also be amortized over the life of the loan in this way.

Energy saving home improvements...
Over the past two years of 2009 and 2010, if you have made home improvements, you are entitled to a full deduction of up to $1,500. The credit can be applied toward qualifying window and door upgrades, heating elements like biomass fuel stoves or high efficiency furnaces, and water and air quality upgrades.

For homeowners installing residential alternative energy components that qualify, you can deduct a full 30% of the cost without limit and until the year 2016.


Home buyer credits...
Although this credit would be hard to miss, it pays to research the deadline extensions to see if you can qualify to take any of the myriad home-buyer tax credits that are currently available under the many programs offered by the government.

If you are unsure whether you qualify for any of these savings, talk to an experience professional for more information.

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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.