I spend money remodeling at the time of the purchase. Does this help me as well.
2006-09-23 10:28:13 · 6 answers · asked by joseph k 1 in Business & Finance ➔ Taxes ➔ United States
Buy the most expensive house you can afford and get the highest interest rate loan you can find. The interest is tax deductable as are the property taxes.
2006-09-23 10:48:25 · answer #1 · answered by Anonymous · 0⤊ 2⤋
The only thing that you are allowed to deduct upon the purchase of a house in which you plan to live is the interest portion of your mortgage and some of the closing cost if they are taxes or interest. The remodel cost is added to your base when you sell and will only have an impact if your capital gain exceeds the exclusion amount ($250 K for single and $500 for married taxpayers) for a personal residence.
2006-09-23 17:39:03 · answer #2 · answered by ? 6 · 1⤊ 0⤋
Please go to:
http://www.irs.gov/publications/p936/index.html
This is the Home Mortgage deducation site from the IRS.
You should find everything you need here.
--You cannot deduct remodeling right now, but keep all of your receipts and you can turn it in if you ever sell the house--
*You can deduct: Mortgage points and interest, some closing fees, property and real estate taxes, and some things if you use your home for a business.
Hope this helps
2006-09-27 15:51:24 · answer #3 · answered by littlebettycrocker 4 · 0⤊ 0⤋
The best thing to do is buy early in the year to maximize your real estate taxes paid and interest paid deductions. Remodeling does not help you until (possibly) when you sell your home (unless it is a business property such as a rental).
2006-09-27 15:43:42 · answer #4 · answered by Dee 4 · 0⤊ 0⤋
You can use Turbo Tax or use a CPA
2006-09-23 17:33:25 · answer #5 · answered by Joe C 2 · 0⤊ 0⤋
as long as you refinanced your house can you get a tax break...
2006-09-27 14:23:46 · answer #6 · answered by twinky 2 · 0⤊ 0⤋