Any benefits we might be able to capture on our IRS 2006 return??
2007-01-11 13:58:47 · 8 answers · asked by jenner76 2 in Business & Finance ➔ Taxes ➔ United States
yea there is since you moved in BEFORE Jan 1st you can go to your county govertment office and file for HOMESTEAD exemption (do it TOMMORROW) In many states this lowers your tax base by $25,000 hence your home bought say 150,000 the property tax says your home is worth $100,000 (most porperty apprasiers are like this by the way) $100,000 MINUS 25,000=$75,000 so basically your property tax is based on HALF of the value of your house (real estate value is way different than tax value) and since you are homestead exempt (starting in 2007) your property value will only go up so much (typically 3%)
as for your 2006 return no benefit too late in the year to claim anything BUT 2007 tax return get ready for a very nice refund :)
2007-01-11 16:10:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Almost none of the closing costs are deductable and you closed too late in the year to effect 2006. You should probably just take the standard deduction for 2006.
You will see a big difference for you 2007 taxes though.
2007-01-11 22:47:12 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
Yes, probably. If you made a mortgage payment on or before 12/31/06, the entire thing is probably deductible as mortgage interest (an itemized deduction). There may be other deductions (prorated property taxes, points) as well. Check out the IRS publication linked below, especially the "What You Can and Cannot Deduct" section. Congrats on your first home!
2007-01-11 22:09:40 · answer #3 · answered by celeste 3 · 0⤊ 0⤋
Your interest and property taxes are deductible from your federal income tax. Check with the IRS or a professional preparer for details. It probably won't help you much in 2006 but will for 2007.
2007-01-11 22:08:37 · answer #4 · answered by seekermike 2 · 0⤊ 0⤋
Most likely not.
Your first mortgage payment was probably in early January, you wouldn't have had much interest on your purchase escrow statement, you wouldn't have paid any property taxes yet (you'll probably end up getting a supplemental property tax bill soon), and you probably didn't pay much in property taxes on your purchase escrow statement.
The only way I can think of, so late in the year, is if you had any loan origination fees which you can fully write off in 2006.
Congrats on the house! And yes, it will be a huge life and tax benefit for you in 2007 and forward.
2007-01-11 22:47:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Homestead taxes? I have no ideal what he is talking of but to answer your question you might be able to write off alot of your closing cost. However you might not have enough to itemize. In that case itemizing won't help you. Next year all property taxes and interest on your home will be tax deductible. Ideally you should have closed in January and you would have more to write off in Jan. of 08. So the real answer here is probably not. I am lost about the homestead taxes and not sure he knows what he is referring to.
2007-01-11 22:12:33 · answer #6 · answered by HairyBack 2 · 0⤊ 0⤋
I am not sure about right after you buy it, i think there is though try www.irs.gov. Next year after you start making payments on the house then you will be able to deduct the interest that you pay this year on your loan. You will get something from the lender saying how much interest you payed.
2007-01-11 22:04:51 · answer #7 · answered by **wishin** 2 · 0⤊ 0⤋
Some states me give you a homestead tax. Congratulations on your new home, now get ready for the shock of property taxes,
2007-01-11 22:02:41 · answer #8 · answered by akter61 2 · 0⤊ 1⤋