Connect2Agent - Home Buyers and Sellers

The top 7 tax savings for homeowners

April 15 is near, which means tax time is here. You know the song--but are you singing the right tune? Here are the top 7 tax savings that you might be eligible for as a homeowner, culminated from H&R Block and Bill Bischoff's Smart Money.

1. You can deduct the interest on your principle residence up to $1 million. 
2. You can deduct the interest on your home equity line of credit up to $100,000.
3. Your real estate property taxes are a deduction.
4. The loan discount point(s) you paid on your mortgage is a deduction.
5. Your private mortgage insurance is a deduction.
6. You may be able to deduct the interest on a construction loan you take out to build a home.
7. The taxes your condo or townhouse association pays on your behalf could be a deduction.

Your eligibility will depend upon whether you qualify for these deductions and any new regulations that have been passed. Connect2Agent is not a tax authority and has garnered this information from the sources referenced above. Please make sure you contact a professional, licensed tax consultant to find out your eligibility for real estate deductions.

If you enjoyed this post, you might want to read:

• How to get money for your house bills
• How to save money on your real estate taxes
• How to get rid of Private Mortgage Insurance

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Posted by Rebecca D. Levinson

Mortgage Forgiveness Debt Relief Act of 2007 extends deductions for private mortgage insurance

If you bought or refinanced a house and purchased private mortgage insurance, you may be eligible for a tax deduction.

Private mortgage insurance (PMI) is required from borrowers who have less than a 20% downpayment to put toward their house. The Mortgage Forgiveness Debt Relief Act of 2007 extends the tax deduction for PMI through 2010 if you qualify.

Here's who qualifies:

• The property you are paying private mortgage insurance on is your primary residence.
  Homeowners with an adjusted gross income of $100,000 or less. Homeowners who make more money than this will receive less of a deduction.

This is good news, as deductions for PMI were not available until 2006 and were not expected to remain available past January 1, 2008.

For more information on qualifying for this deduction, please consult a licensed accountant.

Posted by Rebecca D. Levinson

How to save money on your real estate taxes

Are you staring at your tax bill, wondering why it is so high and if it would be worth it to fight city hall?

CBS' Early Morning Show financial guru, Ray Martin, says you can and should appeal your tax bill if:

• House prices in your area have dropped significantly. The assessed value of your house does not reflect the current value of your house. He cites an example of a house that you purchased two years ago for $320,000 and is now being sold by a builder for $250,000. A successful appeal could result in a $6,000 annual tax bill decreasing to a $4,800 tax bill. This means a savings of $100 a month to you.
• There is an error on your tax card. The room dimensions, lot size and/or type of property could be wrong on your tax card. This error could result in a successful appeal for you.