Tax Deductions??

Question

We just purchased our first home and i was wondering what kind of things we can write-off?? We are keeping reciepts for everything but i'm not sure which ones need to go into our tax file, thanks!

Answer 1

I'm an accountant...You can either itemize your deductions or take the standard deduction, whichever is larger. If you itemize you can deduct property taxes paid, interest on your mortgage, charitable contributions, state income taxes. If you live in a state that has no income tax you can deduct sales tax. You also get personal exemptions for yourself, your spouse and any dependants such as children. Also, this year there's a one time credit for taxes the federal government charged for long distance service. There's also a $250 deduction if you're a teacher for out of pocket expenses you paid for school supplies, etc. You can also deduct points you paid, but they have to be deducted over the life of the mortgage. So if you paid $3,000 in points on a 30 year mortgage, you can deduct $100 per year.

Answer 2

Mortgage interest and real estate taxes will be deductible on your return for the year. If you make improvements to the house (e.g. add a room, remodel a bathroom) those expenses would add to your basis and reduce capital gains taxes when you sell it, if you have to pay any. For repairs (e.g. fix a broken window, replace a faucet washer, paint) you don't need to keep the receipts for tax purposes.

There is a residential energy credit available for certain improvements such as new windows and doors. The credit would reduce your taxes for the year you spent the money rather than having to wait until you sell.

Answer 3

Basically if it's your primary residence you can write off the interest on your mortgage, and your property taxes. If it's a rental property, you can also write off pretty much every dollar you put into it for furniture, fixtures, maintenance, etc.

If you build up a lot of equity and you take out a home equity line of credit, you can write off that interest as well (useful if you have a lot of high-interest credit card debt - you can use the home equity loan to pay off the credit cards and not only have a lower interest rate but it will now be tax deductible!)

Answer 4

i'm undecided you recognize basically what a reimbursement is. during the twelve months you have gotten funds withheld out of your paycheck for federal earnings tax. on the tip of the twelve months, you prepare a sort noted as a tax return to calculate how lots tax you owe entire for the twelve months, and evaluate that to what replace into withheld. in case you had extra withheld than the whole tax, you get the extra back as a reimbursement. in case you probably did no longer have adequate withheld, you may desire to pay the rest particularly than getting a reimbursement. a reimbursement isn't some variety of bonus the government provides for working. that's like in case you went to WalMart and offered $sixteen worth of things, yet gave the cashier a $20 bill. you will get a "refund" of $4, even if that's not them giving you some thing, that's basically getting your man or woman funds back. You paid in $sixteen.87 for federal withholding. You did no longer make adequate to owe any taxes. so as that's what you will come back. truly, because you're allowed to around to the closest greenback, you'll be able to get $17 back - yet i'm valuable the extra 13 cents isn't what you have been asking approximately. There are a pair credit that folk can get that they did no longer pay in, yet you're no longer eligible for those. you may desire to the two be a minimum of age 25, or have a based newborn.

Answer 5

It mainly depends on what you use your home as. If you use your home as just a home your tax deduction are what is provided for the home itself( house ins., repairs on the home, electric bill, etc.). If you use your home as a business and home what you can use as a tax deduction is everything that is provided for the home and you (vehicle ins., gas/mileage, tools/supplies that are needed for the business, electric, phone, house Ins., etc.). We run our business through our home and every year we make sure everything we can deduct is totaled, prepaired, and the paper work is saved.

Answer 6

Jim is right, also if you're paying a tax preparer let them know that you are a first time home buyer, you'll be able to take a credit.

Answer 7

if you itemize your deductions on Schedule A, you can claim the mortgage interest paid and real estate tax paid

Answer 8

Mortgage interest, points, and real estate tax.