I have compiled a list from various sources that I am hoping will help you, I know I found a few that I have been missing:

Mortgage interest.You can deduct all the interest you paid up to $1 million of mortgage debt.

PMI premiums:

Private mortgage insurance (PMI) is an extra fee that protects your lender if you somehow fail to repay your loan. You can deduct your PMI premiums if your mortgage was issued in 2007 and your income is below $50,000 (filing single) or below $100,000 (filing jointly)

Points:

Those “points” you paid to secure a lower interest rate for your new home are deductible. Believe it or not, you get to deduct the points even if the seller paid them for you. If you refinanced during the tax year, you may be able to write off the points you paid over the life of the new load.

Real estate and property taxes:

You can write off the local property taxes you pay each year. If you purchased your home in 2007, you can also deduct any amount that you reimbursed the seller for real estate taxes he or she prepaid during time that you actually owned the home.

Home equity loans:

In general, you can deduct interest on up to $100,000 of home equity debt, no matter how you used the money. If a portion of that loan is used for home improvements, interest on that portion can be written off as mortgage interest, unless it exceeds $1 million. If you use a portion for personal expenses that portion is subject to a $100,000 ceiling.

Capital gains:

If you sell your home you can write off up to $500,000 of the profits of the sale if you’re married and $250,000 if you are unmarried. To earn this tax break, you must have lived in the home for at least two of the last five years.

Home Office:

You can claim your home office as a deduction only if you use that part of your home regularly and exclusively:

As your principal place of business for any trade or business.

As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business.

In addition, who regularly meet clients in a home office can deduct part of the costs of landscaping the portion of the property that is used for business.

You may also get a portion of home improvement costs if you rent out part of your home.

Health at home:

If you built a ramp to accommodate a wheelchair or made additional improvements for health reasons, you can write off those expenses. One taxpayer with emphysema was permitted to write off the expense of building and maintaining his swimming pool after he proved his new swimming regimen had improved his breathing capacity.

What you can’t deduct:
Insurance on your home.

Homeowners Dues

Appraisal fees for your home

The cost of improvements to your home (save your receipts and records when you sell your home, the cost of these improvements can be used to reduce your taxable gain.)

The IRS also offers some helpful information on its Web site at www.irsgov.com and through Publications 936, Home Mortgage Interest Deduction, and 530, Tax Information for First-Time Homeowners or consult your Accountant.

These items are of a general nature, there are may be more, consult your Accountant, I am not giving tax advice.

Ron Bell

Your Reno Realtor

I sell Reno Homes

Filed under: R.E. TAX ADVANTAGES, UNCATEGORIZED