- The Wisdom Journal - http://www.thewisdomjournal.com/Blog -
Are You A Homeowner? A Short List Of What You Can and Cannot Deduct On Your Taxes
Posted By Ron On April 6, 2010 @ 6:35 AM In Government,Taxes | Comments Disabled
If you decide to itemize your taxes like I did, there are some great deductions you can take when you own your home. You probably already know you can deduct your mortgage  interest, but what are some other items you can deduct? I don’t know about you, but I can use all the deductions  I can get.
 (Hint: If you use H&R Block At Home  like I did, you’re already on top of these deductions)
Late payment charges and pre-payment penalties are eligible to be deducted from your taxes so long as they were not for a specific service received in connection with your home loan.
You can also deduct any property taxes you reimbursed to the seller at closing. These are the funds the seller had already paid into escrow before you took ownership. This amount will be on your mortgage  settlement sheet but you won’t get a 1098.
The mortgage  interest on a second residence is also deductible within limits.
The interest on $100,000 (or less) borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan, is also deductible.
If you paid mortgage  points when you purchased your home, those are also deductible, but if you refinanced, you have to spread that deduction over the life of the loan .
You can deduct PMI in 2009, but only for policies dated after 2006. (The right to this deduction disappears as Adjusted Gross Income rises from $100,000 to $110,000 (or $50,000 to $55,000 for those who use married filing separately status.)
If you had to make changes to your home for medical care, such as installing a wheelchair ramp or making a doorway wide enough to accommodate your wheelchair, those expenses could also be deductible.
Premiums paid for your homeowners insurance  is not deductible on your federal taxes.
Yeah, they’re expensive and sometimes you wonder how they’re spent, but HOA dues are not deductible.
Maintenance items like lawn care, pressure cleaning, carpet cleaning, maid services, or HVAC maintenance are not deductible. Repairs are not deductible either.
Improvements you make to your home are not deductible now, but if you save those receipts for improvement expenses, you can deduct them from the profit you make from selling your home.
If you had your home appraised, those expenses are not deductible.
As always, be sure and verify the deductibility of all your expenses with a qualified tax advisor.
Photo by R. Clock 
Article printed from The Wisdom Journal: http://www.thewisdomjournal.com/Blog
URL to article: http://www.thewisdomjournal.com/Blog/homeowner-tax-deductions-2009/
URLs in this post:
 Tweet: https://twitter.com/share
 mortgage: http://www.thewisdomjournal.com/Blog/mortgage-basics/
 I can use all the deductions: http://www.thewisdomjournal.com/Blog/my-2009-taxes-are-finished/
 Image: http://www.thewisdomjournal.com/Blog/wp-content/uploads/2010/04/home.jpg
 H&R Block At Home: http://www.kqzyfj.com/click-2864384-10449803
 homeowners insurance: http://www.thewisdomjournal.com/Blog/insurance/#homeowners-insurance
 taxes: http://technorati.com/tags/taxes
 tax: http://technorati.com/tags/tax
 tax planning: http://technorati.com/tags/tax+planning
 government: http://technorati.com/tags/government
 homeowners: http://technorati.com/tags/homeowners
 homeowners insurance: http://technorati.com/tags/homeowners+insurance
 R. Clock: http://www.flickr.com/photos/rclock/
 The Wisdom Journal: http://www.thewisdomjournal.com/Blog/
 subscribe today: http://www.thewisdomjournal.com/Blog/welcome.php/
 Twitter: http://www.twitter.com/wisdomjournal/
 Facebook: http://www.facebook.com/pages/The-Wisdom-Journal/147054648679421
 »crosslinked«: #
Copyright © 2008 The Wisdom Journal. Some rights reserved.