There are valuable tax deductions and credits available to homeowners. Consider the following tips when filing taxes for 2011.
- Property tax payments can be deducted. Claim the amount that you actually paid in the calendar year.
- Did you pay points to refinance? Then deduct the points over the life of the loan. If you paid points to get a mortgage, you may deduct the full amount for that tax year.
- Don’t forget private mortgage insurance. Households making less than $100,000 in adjusted gross income can deduct PMI payments in full.
- Track and deduct home-related expenses for maintenance, repairs, and improvement.
- If you sold your primary residence in 2011, you may need to pay capital gains taxes on any profit. Individuals and couples can exclude certain amounts. Refer to the IRS capital gains tax code for details.
- File your energy tax credits appropriately.
- Mortgage interest can be deducted up to $1 million of the mortgage debt.
For more information on these tax tips, refer to The National Association of Realtors site and consult with your accountant to responsibly maximize your home deductions.