Yes, the deadline to report your taxes is almost here, and given the state of the economy, saving every penny is important. One of the major advantages of owning Virginia Beach VA real estate becomes readily apparent at this time of year, and that is, of course, tax deductions. As a homeowner, you can usually deduct 100% of your mortgage interest, insurance, and property taxes –and write off many of your closing costs.
In order to reap these benefits, you will have to itemize your deductions on your return, but that is time well spent in view of your savings. And better yet, in addition to deductions, there are also tax credits available to you as an owner of Virginia Beach VA real estate. Remember, the tax credit actually reduces the amount of taxes you will pay, whereas a deduction reduces the amount of your taxable income.
- Mortgage interest —includes late payment charges and prepayment penalties.
- Property taxes
- Equity loan interest
- Closing costs for new or refinanced loans–origination fees and discount points.
- Required private mortgage insurance taken out after 2006. This is the last year you will be able to take this deduction.
- Moving expenses–provided that your new job is at least 50 miles farther from your old Virginia Beach VA real estate and that your company has not reimbursed you for these expenses. You can also deduct the expenses of traveling from your old house, including lodging expenses. Visit the IRS website and use form 3903 for these deductions.
- Home office use–according to the SBA, the average home office deduction is $3686, so it is to your advantage to explore this area as you prepare your return. Click here for IRS rules relating to home office deductions.
- Home improvements on your Virginia Beach VA real estate done for medical reasons–(attested to in writing by a qualified doctor). You are allowed to deduct any amount over 7.5% of your adjusted gross income. See IRS Publication 502 for complete information.
- Energy efficiency—if you purchased an energy-efficient product or renewable energy system for your Virginia Beach VA real estate, you may be eligible for a federal tax credit.
**Note for Distressed Homeowners: The Cancellation of Debt Income associated with loan modifications, short sales, and foreclosures will be waived by the IRS through 2012.
April Partida is a Professional, Experienced and Results Oriented, Top Virginia Beach VA Realtor committed to meeting your needs.
April has distinguished herself as a leader in the Virginia Beach Virginia real estate market. April assists buyers looking for Virginia Beach VA real estate for sale and aggressively markets Virginia Beach homes for sale. April is also a Short Sales and Foreclosures Resource Specialist (SFR). Avoid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure.
You can reach April at 757-227-1777 or by email, firstname.lastname@example.org.
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