Top 3 tax breaks for homeowners in Folsom & El Dorado Hills
1. Mortgage interest deduction. Assuming this home is your personal residence, 100 percent of the mortgage interest you owe and pay before Dec. 31, 2011, is deductible on your 2011 taxes. In January, your mortgage lender will send you a form documenting the precise amount of interest you paid, although most lenders also now make this form immediately available to borrowers online.
Chances are good that you paid some amount of advance interest on your home loan at closing — expect to see that on your statement from your lender, but you should also be able to find it on the HUD-1 settlement statement you received from your escrow agent at closing.
2. Property tax deductions. Again, assuming that this is the home you live in most of the time, you should be able to deduct 100 percent of the property taxes you’ve paid to your state and/or local taxing agency this year.
3. Closing-cost deductions. Discount points and origination fees paid to your mortgage lender and/or broker at closing are frequently deductible, but there are rules around this, which tax software and/or professionals can help you make sure you meet. Also, state and local transfer or stamp taxes paid at closing are generally deductible on your federal returns.
Beyond these basics, there are various home improvements (especially those that increase your home’s energy efficiency), state and local tax credits for buying a foreclosure, and other tax advantages that might be available to you.
My advice is to work with an experienced, local tax preparer or, at the very least, use reputable tax preparation software to ensure that you get the maximum tax advantages available to you as a result of your new role as a homeowner.
(IRS Publication 530 offers a more nuanced view into Tax Information for Homeowners):
Do you have specific questions about any homes in Folsom in El Dorado Hills on the Sacramento real estate market? Contact Alvin Newton and the Newton3 team by email (FolsomProperties@gmail.com ), phone (916-941-5798), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Folsom MLS and set up a customized email-based home search for you to track a specific Folsom Home, El Dorado Hills Home, and other Sacramento properties at your leisure. Thank you for visiting the Folsom Real Estate blog and we look forward to serving you and your real estate needs.