N.E.O. Home Loans - Tax Deductions for Home Owners

Tax Deductions for Home Owners

Home ownership has its tax advantages. Make sure that you're not missing out on your deductions. Home-related tax deductions, real estate tax benefits and home loan deductions, such as mortgage interest, are all perks that a home owner can take advantage of around tax time. As always, consult with a professional tax advisor to find out what tax deductions apply to you.

Deducting Real Estate Taxes *

That's right, your real estate taxes can be tax deductible*. Your interest statement should list the amount of real estate taxes you paid as long as your real estate taxes were placed in an escrow account when you closed your home. If your real estate taxes aren't included in your monthly mortgage payment then you can review your cancelled checks to find out exactly how much you paid.

Deducting Mortgage Interest *

The interest that you pay on your home mortgage may be tax deductible*. Every year, you should receive a "Form 1098" from your lender that details how much mortgage interest you paid. Consult with a professional tax advisor to find out how to claim your mortgage interest correctly on your tax returns.

Deducting Loan Points Paid on a Refinance *

You might be able to deduct any points you paid to buy down the mortgage rate if you refinanced in the last year. These points must be deducted proportionately over the life of the loan. For example, if you take out a 30 year mortgage, you could deduct 1/30th of the points each tax year.

Many home owners have overlooked this important tax opportunity. If you have refinanced more than once, you can even deduct points from an earlier refinance. Consult with your professional tax advisor to find out if you can take advantage of these deductions.

* Always consult a professional tax advisor