There are a few good tax breaks available for homeowners seeking shelter from mortgage loan interest, closing costs, property taxes, capital gains, home businesses and moving expenses. I suggest that you consult your tax advisor for details before filing a return.
Your are allowed to deduct the amount of mortgage interest paid during the previous year on Your primary or secondary home up to $1 million on first mortgages. Those purchasing vacation homes may be eligible for additional tax breaks.
Finance charges like commitment fees, processing and application fees, points and origination Fees, as well as interim interest are also deductible for the year which they were incurred. Points on a purchase, equal to one percent of the loan principal are tax deductible over the life on the loan.
Property taxes are fully deductible as is the interest on home equity loans up to $100,000, no matter how the money is used. Equity loans used for home improvements are subject to larger deductions.
You can bank up to $250,000 in profit if you are the single owner of your primary residence, or $500,000 if you are married, without owing any capital gains taxes, if you've lived in the house for at least 2 of the past 5 years.
To qualify for a deduction for your home office, you must work in a separate defined space in your home devoted exclusively and regularly for the business.
If you changed jobs or started a new job, moving expenses such as travel and transportation costs lodging and storage may be deductible. Restrictions do apply, so consult your tax advisor for details.
Although these are legitimate deductions, many come with stipulations, so seek the advise of your tax advisor for more details.
For real estate information in Wilmington, NC, visit http://www.thekeytowilmington.com/
