1. Check your settlement statement carefully for deductions. For example, real estate taxes are prorated at closing. Be sure to deduct the portion charged to you.
2. Real estate taxes are deducted in the year they are paid, regardless of the date they were assessed.
3. Interest on a home equity loan is deductible regardless of the use of the loan proceeds as long as the home equity indebtedness does not exceed the lesser of $100,000 ($50,000 in the case of a married person filing a separate return) OR the difference between the fair market value of your home and the outstanding balance on the loan treated as acquisition indebtedness.
4. Mortgage interest is also deductible on a qualifying second home. A second home can be a house, apartment, condo, mobile home, houseboat, or travel trailer which contains sleeping, toilet, and cooking facilities.
5. Certain closing costs paid by the seller may be deductible by the buyer. For example, points paid by the seller can be deducted by the buyer if the buyer reduces his cost basis in the home by the amount of the points
Subscribe to:
Post Comments (Atom)
1 comment:
Great investment opportunity in Costa Rica, Costa Rica properties beach condominiums, beach condos.
Visit us for more information at www.jaco-bay.com
Post a Comment