Most homeowners are keenly aware of the interest tax deduction on their home loan, but there are many other tax breaks which are often overlooked at income tax time. Pro-rated property taxes and mortgage interest in the year of sale are deductible. You will find these amounts listed on your closing settlement statement. If you paid off your mortgage and had to pay a pre-payment penalty, it qualifies as tax deductible interest. If you paid an "acquisition mortgage loan fee" on a home loan, this fee can be deducted as itemized interest. Home improvement loan fees are also deductible. Any remaining loan fees from re-financed or paid-off mortgages are fully deductible at the time of the mortgage payoff.
      Certain items don't qualify as deductions, but can be added to the cost basis of your home, such as transfer taxes, recording and title fees, and special local property tax assessments for new sidewalks, streets, or sewers.
      Don't be intimidated by the tax code! A little research or consultation with an expert can help you maximize your real estate tax advantages.
     

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

FEATURED PROPERTY

Endless Summer in this Glen Mills Beauty
Take one look at this wonderful home and you'll wish for an Endless Summer. Located on a tranquil cul-de-sac, this elegant home in Glen Mills is in the award winning Rose Tree Media School District.
Location: Glen Mills, PA
Price: $799,000 Reduced!
VIEW THIS PROPERTY
VIEW ALL PROPERTIES

See the nation's top rated school reports >