Home > Real Estate News > Top 3 tax breaks for homeowners in Folsom & El Dorado Hills

Top 3 tax breaks for homeowners in Folsom & El Dorado Hills

Folsom Homes | By Folsom Realtors

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.

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