Now that Santa has come and gone, is the Tax Man far behind?

10402013 is coming to a close and between throwing out the wrapping paper and finishing off the turkey; you may want to prepare for tax time before ringing in 2014.

If you have sold your home this year, there are a few items you will want to make sure to collect before tax prep:

  • Property Taxes: Any taxes paid (reimbursed or paid ahead) at closing will show up on the HUD-1 statement and may be able for deductions on your taxes.
  • Mortgage Points paid: Any points paid at closing may be able to be deducted, even if the seller “paid” for them at closing.
  • PMI: Any Private Mortgage Insurance can be deducted – but 2013 IS the LAST year for this deduction.

Be sure to have your HUD-1 from closing to make sure all deductions are taken.

Other Tax Tips for Homeowners:

  • Pre-pay property taxes
  • Home equity loans – don’t forget any interest paid on a home equity loan or line of credit can be deducted like the interest on your home mortgage.
  • Vacation / 2nd homes – interest paid on this may also qualify as a deduction
  • Energy-Efficient Upgrades – gather all your receipts and documents for any upgrades done to make sure you don’t miss any energy-efficient upgrades done this year. 2013 IS the LAST year for this deduction.

Ideas to help with next Year’s taxes …

  • Remodeling & Recycle – instead of taking cabinets, tubs or fixtures to the landfill, donate them to Habitat for Humanity’s Restore to earn a tax deduction.
  • Clean out and donate – any clean up or clean out can be donated if it’s to a IRS-designated 501c3 organization, like Goodwill.

This is just to give ideas to discuss with your CPA or tax preparer – always – ALWAYS – consult your tax preparer before making any tax decisions.

There are many benefits of home ownership – Call me to find out more and how you can take advantage of being a homeowner!

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