Tax deductions for homeowners

Tax deductions for homeowners represent the financial side of the joys of home ownership. Of course, there are many other things to love about having your home; many intangible.  But, from the view point of managing your finances, nothing is more exciting than those wonderful tax deductions.  I thought I’d send out a little blog post as a reminder to make sure you are taking all of your deductions.  January is after all the month for  cold weather, new year resolutions and w-2 forms in the  mailbox.

• Mortgage interest remains one of the only substantial deductions for many wage earners.
• PMI has gone in and out of the tax roll but this year it is in, so take your deduction.
• Closing costs: be sure to provide a copy of your HUD1, aka your closing statement to your accountant if you purchased a home in 2011.
• Real estate taxes are also deductible and tax time is probably the only time you might be glad you are living in a high tax district.
• Energy star and energy efficient home improvements put money in your pocket all year and at tax time.

Check out home related deductions at the irs website or just do what I do and hire a CPA to do it for you:

http://www.irs.gov/publications/p530/ar02.html#en_US_2010_publink1000255155

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