Colorado Mortgage Broker

Don't Miss Out! Home Owner Tax Deductions for 2010 Denver Colorado

If you don't take advantage of these Home Owner Tax Deductions you are throwing your money down the drain.  You may already be aware of some of the following Home Owner Tax Deductions, but some you may not know about. 

Mortgage Interest:  The interest you pay on your mortgage is tax deductible.  Your mortgage company should have provided a 1098 mortgage interest statement to you by now which breaks down the total amount of interest that you paid in 2009.  This is one of the biggest Home Owner Tax Deductions that you have.

Property Taxes:  Property taxes are another of the Home Owner Tax Deductions you can take advantage of this year.  You must itemize your deductions in order to take this one, but starting in 2008, the government started allowing filers who have the standard deduction to take advantage of this as well.

Home Buyer Tax Credit:  By now you have probably heard enough about this Home Owner Tax Deduction but the home buyer tax credit is a huge tax break to both first time home buyers and existing home owners.  The credit is $8000 for married first time home buyers, $4000 for singles, and $6500 for married move up buyers, $3250 for singles.  This one is a straight tax credit!  You must be under contract by April 30th to take advantage of this Home Owner Tax Deduction!  You can find more details here:  Home Buyer Tax Credit

Mortgage Points:  Points paid for buying a home are fully tax deductible in the year you purchased your home.  On a refinance, points must be amortized over the life of the loan meaning that if you paid for example $3000 in points on a 30 year fixed mortgage, you can only deduct $100 per year each year for 30 years.

Private Mortgage Insurance:  Private Mortgage Insurance, or PMI, is one of the more recent Home Owner Tax Deductionsthat congress approved.  You can write of the cost of your monthly PMI payment if you have PMI, common for loans with less than 80% loan-to-value ratio.

Home Improvements:  Keep your receipts!  Home improvements are not Home Owner Tax Deductions for this year, but if you keep records, the amount of improvements can be added to the sale price of your home in the year you sell when determining the tax basis for the sale.  Energy efficient improvements may be tax deductible in the year you make the improvements!

Tax Free Profit on Sale:  One major advantages of home ownership is the ability to take tax free profits on the sale of your home.  The rule for this Home Owner Tax Deductionis that you must have lived in the home for at least 2 of the last 5 years as your primary residence.  Single filers are exempt from $250,000 in gains, married couples are exempt from $500,000.

This article is not tax advice and I am not a tax professional or CPA.  Please consult with your tax advisor for verification of your specific Home Owner Tax Deductions!