Tax Breaks for 2012 - Phyllis Wolborsky & the Wolborsky Group-Raleigh, NC & The Surrounding Triangle Areas
We all want as many tax breaks as possible when we are ready to do our taxes. Below are just a few things that come to mind. Understand I am not a tax accountant. If you have any questions please call your tax accountant.
1. Be sure you have your Mortgage Interest Statement-IRS Form 1098. This is a "Big" one. Your are allow to deduct 100 percent of the mortgage interest you paid in a year, including prepaid interest or points you might have paid at closing, if you purchased a home last year.
2. Find and use your Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and /or state. Be sure you are only deducting the property tax and not other fees that might be added to you property tax statement.
3. Settlement Statement(HUD-1) If you bought or sold a home last year, right after closing you should have received a closing statement or the HUD-1 Settlement Statement. If you cannot find your closing statement(HUD-1) call your Realtor and request a copy.
4. Moving Expense Receipts are tax deductible.
5. If you had a foreclosure or short sale or deed in lieu of foreclosure be sure to have a Cancelation of Debt Statement Statement-IRS Form 1099.
6. If you use a portion of your home for business be sure to include the utility statements for a home office.
7. If you own rental properties you will need the Income & Expenses Statement.
8. Receipts from a contractor for energy efficient home improvements.
9. If you own a home you bought in the last few years using a Mortgage Credit Certificate issues by a local housing authority the Certificate may entitle you to a hefty tax credit.
No matter what your tax situation if you own a home it can't hurt to get professional help and advise to make sure you maximize your deductions, while minimizing your exposure to an audit.