Texas Hill Country Blog

THE CLOCK IS TICKING
April 6, 2010

Filed under: Blogroll
— EasyMoneyNeverWorks @ 3:45 pm

Numerous tax deductions are available for the real estate buyer, the home owner, the investor, or the farmer/rancher. In every case, it is always best to work with a Certified Public Accountant (CPA) to insure that you have taken every advantage the Internal Revenue Service (IRS) makes available. For homeowners with loans, there is a number of mortgage related deductions. The interest on your mortgage is tax deductible for either your main home or second home. Even second mortgages can have deductions for home equity loans. When you purchased, you may have paid ‘points’ or certain fees to a lender to receive a loan and these fees might be deductible as well.

Be prepared when meeting with your CPA by taking along a copy of the final HUD closing statement. This will typically give your accountant the necessary information to help you take full advantage of any savings.

In 2009 certain home improvements became deductible if such improvements were aimed at lowering your energy bills. If you purchased in 2009, then you may be eligible for the first time homebuyer tax credit. Certain restrictions apply, but if you purchased between Jan. 1 and Nov. 6, 2009 you are entitled to a tax credit worth up to $8,000.

Even longtime homeowners who have lived in the same home for five consecutive years out the last eight years, could possibly qualify for $6,500 tax credit on purchases made after Nov. 6. Certain regulations and income levels again apply.

At the end of this month, the first time homebuyer’s tax credit for up to $8,000 was extended and affects homes purchased after Nov. 6, 2009 and on or before April 30, 2010. There are certain regulations that apply as far as income, home price, and default measures if you sell the home within three years of purchase. There is also a move-up tax credit worth up to $6,500.

The April 30 deadline may not be extended, so your opportunity is here right now. You do not have to close the sale by April 30^th, but you must have signed escrowed contract. If you are a first time homebuyer, then you should be talking to a lender right away to assure all of your necessary qualifications and paperwork are complete. Most lenders will know the rules and will walk you thru the process.

Go luck…Sherman D. Durst