Q & A on Home write-offs

Question:  What’s the single most important piece of advice for people filing their taxes as a first-time home owner?

Answer: You have to take a look at your closing statement from when you bought the house. It’s commonly called the HUD-1 form and you receive it at the closing. Occasionally, there are fees such as prepaid taxes or interest at closing that can be deductible.

Question:  What tax advice do you have for someone who’s owned their home for 10 or 20 years?

Anwer: If you’ve been a longtime home owner and you’ve been through refinancings, you have to be careful about how much interest you’ve deducted, especially if you have a home equity loan or equity line. A lot of people who’ve refinanced have sizable equity lines. The maximum outstanding home equity debt that’s deductible is $100,000; the maximum deductible amount of interest paid on mortgage debt is $1 million.

Read more: http://www.houselogic.com/blog/tax-deductions/tax-questions/#ixzz2NAMFKFJ3

For further market information, please give me a call! Jill 402.618.9984

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