we closed july 13th. what can we deduct? We've put in $5,000 in labor and repairs. Can we deduct that? plus our tax valuation is $14,000 more than what we bought the house for. what are the options on getting some of those taxes back? i hate taxes. why does it have to be so confusing? why isn't there a Simple list of what you can deduct without reading 150 pages of tax law?
2006-12-27 03:33:07 · 3 answers · asked by jyl l 2 in Business & Finance ➔ Taxes ➔ United States
It's easy. I bought a home in 2005 and Turbotax walks you through every form and legal deduction! You don't need a CPA just because you bought a home. First things first, labor and repairs - NO. Tax valuation - NO. Taxes paid, YES. Go to turbotax.com and choose the online option. You don't have to pay unless you file, but it will give you a good idea of what you can deduct. Using the online program is just like the software version you buy in the store.
2006-12-27 07:56:27 · answer #1 · answered by Kevin K 3 · 0⤊ 0⤋
This question was asked on page 4 already. You can deduct any loan points and interest paid plus real estate taxes. Improvements are not deductible now - add them to your purchase price when you sell to figure gain. As for real estate tax valuation - first be happy that the value has gone up - you can look into protesting this with your local tax assessor - bring proof of your purchase.
2006-12-27 11:42:04 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
Deductable:
Mortgage Interest
Points
Property Taxes
Non-Deductable:
Principal Payments
Labor and Repairs
(Note: Some the "repairs" may qualify for the new energy credit if they were for energy efficient windows, etc.)
Getting the valuation reduced on your home is a county issue. Contact your county assessor to see if they will change the assessment.
I think it is time that you see a professional to do your taxes.
2006-12-27 11:45:05 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋