Posts tagged with "Taxes"

Taking down the IRS

Gosh, I truly hope you had better fortune with the IRS than I did this year.  (And no, I promise not to spend it all in one place… LOL)IRS refund 001

  • Seriously though, the tax advantages of owning real estate are many— and hidden in the tax code are many opportunities for seriously reducing what you have to pay the gubmint.   However, as in all things that have to do with gubmint paperwork, the devil is in the details.  Now, you can do yourself a BIG favor though, and take advantage of the IRS publications that discuss (in detail) just what these tax-saving opportunities are all about.  Give ’em a read (they’re free btw) and you may just be surprised at some of the items you might be able to take advantage of— and reduce the amount of money you have to give to the IRS!

Here’s a partial list that you can scope out at…

Publication Number

  • 504  Divorced or separated individuals
  • 527 Residential rental property
  • 530  Tax information for homeowners
  • 537  Installment sales
  • 544  Sales and other dispositions of assets
  • 547  Casualties, disasters, and thefts
  • 551  Basis of assets
  • 587  Business use of your home
  • 936  Home mortgage interest deduction
  • 4681  Cancelled debts, foreclosures, repossessions, and abandonments

Forms and Instuctions

  • Schedule A Itemized Deductions
  • Schedule D Capital Gains
  • 982 Reduction of tax attributes due to discharge of indebtedness
  • 4797 Sale of business property
  • 5405 Repayment of first time homebuyer credit
  • 6252 Installment sale income
  • 8828 Recapture of federal mortgage subsidy
  • 8949 Sales and other dispositions of capital assets

Invest a few minutes with a couple of these pamphlets and you just might not have to pay some of your hard earned money to the IRS.  Good luck!


6 Tax Deductions for Homeowners

Most people who rent take the standard deduction, while most people who own their own home get to itemize their deductions on their tax return— and usually wind up paying less in income taxes as a result!  For one thing, if you own a house, your home deductions will be large enough that you will be able to take other deductions as well (ie. charity, non-reimbursed work-related expenses, medical bills, and more).  For renters, those deductions are typically money left on the table.

Ok, so just what deductions can a homeowner take?

#1  Mortgage interest.  In the early years of a mortgage, most of the money goes to pay interest, and that is usually all deductible.

#2  Points.  When you take out a mortgage, you sometimes pay points, and these are usually deductible.

#3  Property taxes.

#4  Home office.  If you work from home a certain percentage of your housing costs may be deductible.

#5  Home improvements for medical care.  These must usually be doctor prescribed.

#6  Moving expenses.  Not all moving expenses are deductible, so like everything else on this list- check with your tax professional to develop the best money saving strategy.