Tax Time

The dreaded task of doing my taxes has been looming and even though I have a pretty easy situation for filing, I have been procrastinating. I want to make sure that I’m taking  all the deductions I can and that I’m getting back all the  money owed to me. If you are a homeowner, you may be eligible to boost your return with certain deductions. Here are a few good tax tips to take advantage of for home owners:

1.      Property taxes are deductible. For new home owners, don’t forget the taxes you may have reimbursed the seller for. (These will listed on your settlement sheet from your closing.)

2.      Interest on your mortgage for your primary and secondary homes is deductible (up to a certain amount).

3.      If you have a home equity loan or line of credit, you can deduct the interest on up to $100,000.

4.      You can deduct the points you paid on the home (or the seller paid for you).

5.      Any money spent on improvements or renovations you made to your home for medical reasons are deductible.

6.      2013 is the last year that you may be able to deduct premiums for PMI (Private Mortgage Insurance) if your policy was issued after 2006. (You may not be eligible for this deduction under certain salary conditions so consult your tax advisor.)

Always consult your tax advisor to maximize your return and to make sure all your bases are covered. There may be some deductions you weren’t aware of. Too bad we can’t deduct our heating bills for this frigid Michigan winter. We would all have a nice tax return to look forward to next year!