7 Homeowner Tax Advantages

7 Homeowner Tax Advantages

Article From BuyAndSell.HouseLogic.com

By: G. M. Filisko

Published: March 11, 2010

When you're evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership.

Owning your home not only allows you to build wealth through appreciation, but it can also reduce the amount of income tax you pay every year.

Here are seven tax benefits for homeowners.

1. Homebuyer tax credits

If you purchase your first home before April 30, 2010, you're entitled to a tax credit of up to $8,000. If you currently own a home, but sell it to purchase another home before April 30, 2010, you're eligible for a federal tax credit of up to $6,500.

2. Deductions for loan fees

Typically, you can deduct the "prepaid interest" you paid when you got your mortgage loan. That includes points, loan origination fees, and loan discount fees listed on your settlement statement, even if the seller paid those fees for you. Each time you refinance your home, you can deduct prepaid interest fees.

However, you must meet certain requirements to take the prepaid interest deductions when you purchase or refinance your home. Check with your accountant to be sure you're following the rules.

3. Property tax deductions

In the year you purchase your home, you're entitled to deduct the real estate taxes you paid at the closing table. You can continue to deduct the property taxes you pay each year.

4. The mortgage interest deduction

Every year, you can deduct the amount of interest and late charges you pay on your mortgage and home equity loans, though there are limitations. If you're required to purchase private mortgage insurance (PMI) because you made a downpayment of less than 20% on your home, you can also deduct those premiums as mortgage interest expenses.

5. Home office expenses

If you have a home office you use only for business, you may be eligible to deduct the prorated costs of your mortgage, insurance, and other expenses related to that space. The government scrutinizes home-office deductions closely. Be sure you're entitled to the deductions before claiming them.

6. The costs of selling your home

In the year you sell your home, you can deduct the costs of selling it, including real estate commissions, title insurance, legal fees, advertising, administrative costs, and inspection fees. You can also deduct decorating or repair costs you incur in the 90 days before you sell your home.

7. The gain on your home

If you lived in your home for at least two of the previous five years before you sell it, the government lets you to take up to $250,000 of profit on the sale of your home tax free. That amount is doubled for married couples. This deduction isn't available on rental or second homes.

The government also allows you to subtract from your home sale profit any amounts you spend on improvements, such as window replacement, siding, or a kitchen remodel. Those deductions are in addition to the tax credits you can receive in 2010 for making energy-saving upgrades. Money invested for routine maintenance and repairs doesn't count.

 

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re-blogged from http://andrewollick.com/realestateblog/index.php/general/homeowner-tax-advantages/
 



SW Florida Homes http://www.andrewollick.com/
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This article includes general information about tax laws and consequences, but is not intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws vary by jurisdiction.


More from HouseLogic


More on the mortgage interest deduction


(http://www.houselogic.com/articles/mortgage-interest-deduction-vital-housing-market/)


Claiming your homebuyer tax credit (http://www.houselogic.com/articles/claim-your-homebuyer-tax-credits/)



Tips to use when preparing your return (http://www.houselogic.com/articles/tax-tips-homeowners-preparing-2009-returns/)


Other web resources


More information on homeownership deductions (http://www.nolo.com/legal-encyclopedia/article-29693.html)

IRS information on the mortgage interest deduction (http://www.irs.gov/pub/irs-pdf/p936.pdf)


G.M. Filisko is an attorney and award-winning writer who's enjoyed the tax advantages of homeownership for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You took a Photo of WHAT?

As realtors, we have to take photos of the houses we are about to list.
We all know what we are supposed to do:
buy a wide angle camera (check),
learn to use it ( lol- check),
read about photography basics (backlighting, exposure, iso- check),
get msc objects in the room out of your way,
cram yourself into the furthest corner of the room and... CLICK.

For some people it's more of an ordeal than for others. Luckily I had years of professional photography experience prior to starting in Naples real estate, so for us, it's not an issue.

However, sometimes, while going through the Naples MLS, I have to do a double take at some listings and say:

"WHAT WERE THEY THINKING?"

Some realtors have an eye for a good angle, others learned the proper ways to take good listing photos, then there're some who invested into a good camera,  and others who still take pictures with a point-and-shoot ....   and then there's this realtor.

At first glance you don't see anything majorly wrong.
Yes, it's very crooked, yes the colors are drab (but i don't expect your average realtor to know their way around Photoshop or Lightroom).

Otherwise it's a perfectly ordinary picture of a Naples townhome.That is until we go to the next photo.

"What's wrong with this photo?"- you'll say.
Well, where do I start?
-Poor lighting
-Horrible angle
-Realtor's elbow in the mirror

...and also the fact that I can't really see the bathroom.

When i said "wide angle" is a must, I meant it. This photo cuts off 50% of the bathroom. But you know what, that's fine. I've seen worse in other listings, it's no big deal... Or have I?

WHAT IS THAT?
If i thought the previous photo was bad, I don't know what to say about this one.
What exactly was this meant to show?
- A chair?
-A pack of cigarettes?
-A hose in the left bottom corner?
-Are they selling this dining set?
Even if they were, it's even a good picture of the dining set. But let's move on...

Picture # 4: At this point I started laughing.
Can anyone tell me what THIS was supposed to "advertise"?

Picture # 4

Picture # 5: How about this? Do you think maybe this realtor was just snapping random pictures of whatever was in from of the lens?

 

And finally..... my favorite.... drum roll!

Ta-da!!!! No comment.

Only as I was writing this post, did I realize that i don't really know what this condo looks like. There's not a single picture of the living area.
All we saw was a purse, a fence, an outdoor chair, a tub, and tubes of soap and shampoo.

So here's a lesson for you, boys and girls:

If you're a realtor, please please please, buy yourself a good camera and learn to take pictures, or have someone else do it for you. Listing photos account for more than 80% of property's interest, don't rob your clients of that.

If you're a home seller, review your future realtor's prior listings to make sure your house isn't advertised like this.

Let me know what you think in the comments below and if you have examples of more bad listing photos, please email us to be featured in the next blog.

Feel free to subscribe to our blog for more useful and entertaining news.
re-blogged from http://andrewollick.com/realestateblog/index.php/general/bad-naples-listing-photos/

SW Florida Homes www.andrewollick.com
SW Florida Luxury Homes www.oceanhomesrealty.com
SW Florida New Homes and Builders www.newhomes-ae.com