Home Mortgage Interest Income Tax Deduction 2009, 2010
Do you know you can get an income tax deduction on the mortgage interest you pay? There are also other deductions you can claim on your principal residence or second home, such as property taxes, and in some cases, private mortgage interest.
Itʼs tax time and itʼs time to remember, your house is not just a home, itʼs a huge tax deduction!
Hereʼs What You Get to Deduct
- Your property taxes and real estate taxes
- Property taxes for people who donʼt itemize. If you do not itemize deductions for 2008, you can increase your standard deduction by up to $500 of real estate taxes paid in 2008 if you file as a single person, or by up $1000 of property taxes paid if you file jointly.
- The mortgage interest on your primary residence, also your secondary residence. (There are limits but, few are affected by this.)
- The interest on up to $100,000 borrowed on a home-equity loan or home-equity line of credit. It doesnʼt matter why you took the loan.
- Points you paid when you bought the house.
- The premiums you paid for private mortgage insurance in 2008 but, only if the policy was issued after 2006.
- Home improvements required for medical care.
How much you can actually save depends on your annual income and a variety of other factors. First of all, your filing status determines a lot. Are you filing as Head of Household, Married filing jointly or Married filing separately? Your standard deduction amount will vary based on these differences.
You have to look at your taxable income and weigh the difference between a standard deduction against itemizing deductions. If you have more value in all of your itemized deductions then, itʼs smarter to go with itemizing. Your home related deductions must add up to more than the standard deduction.
If you are looking for the answers to questions like these seen here then, visit the professionals at Turbo Tax. They also have tools for estimating your mortgage interest deduction. If you would like to have an idea of how to figure this out, try using the mortgage interest calculator. You can use Turbo Tax to calculate your deductions. It’s always brings us peace of mind to consult a company we trust.
In addition to home mortgage interest income tax deductions, you will find many more you probably never thought of. That is the kind of help weʼre all looking for. You deserve to claim everything you are entitled to claim. As business owners, being informed will allow us to carry on with growing our businesses.
