It is tax time. Yes, I know most people dread this time but for home owners this can be a joyful time. There are some really nice deductions and credits homeowners can take advantage of. Have fun with your 2009 tax filing and save some dough!
– tax credit for first time home buyers
– tax credits for move up home buyers
– property tax deduction
– mortgage interest deduction
– energy and home improvement credit
– moving deduction
– mortgage point deduction
Tax credit for First Time Home Buyers & Move Up Buyers
Most first time home buyers qualify for this tax credit of up to 10% of the purchase price (up to $8000) on their primary residence (restrictions apply) if they purchased a home in 2009.
Qualified buyers of a second home, who owned and occupied a primary residence for five consecutive years may take advantage o f a tax credit of up to $6500 (or up to 10% of the purchase price). Restrictions apply.
Property Tax Deduction
You may be able to take advantage of qualifying property taxes. You used to have to itemize your taxes in order to receive this benefit. Under the new rule, homeowners who do not itemize can boost their standard-deduction amount by up to $500/$1000 (single/married) for property taxes paid during 2009. Include a Schedule L with your 2009 tax return. Consult with a CPA or other tax preparer.
Mortgage Interest Deduction
Mortgage interest deduction on your home is one of the best ways to trim your tax bill as a home owner. You can only take the mortgage interest rate deduction if you are using Schedule A to itemize your deductions. Consult with your tax professional.
Energy and Home Improvement Credit
You may be able to take advantage of a credit up to $1500 for qualifying energy-efficiency improvements to your existing home, such as insulation, energy efficient windows, energy efficient heating, etc. Ask your tax professional about specific requirements and qualifying factors for this credit.
Moving Deductions
If you were one of the unfortunate people in 2009 who lost their job and had to move to take advantage of a new job, moving expenses may be deductible if you had to move more than 50 miles. Consult with your tax professional about which expenses may be deducted.
Mortgage Point Deduction, Refinance Points
When you buy a home, you get to deduct (all at once) the points you paid to get your mortgage. Many people refinanced in 2009 to reduce their monthly payments and take advantage of lower rates. If you refinanced in 2009 and paid for points you can deduct the points of the life of the loan. It probably won’t add up to much but every penny counts these days. Consult with your tax professional.
The information provided in this blog is for informational purposes only and is not to be construed as tax advise. We are real estate agents and cannot give you tax advice. Please contact your accountant or CPA about how you may be able to benefit from these credits and deductions. If you are looking for a CPA in Seattle, please contact Eric Kauppila, CPA, MS Tax at Greenwood, Ohlund & Co., LLP at 206.782.1767.
Kerstin G. Brooks
Brooks & Heinze Team
Skyline Properties, Inc.
206.276.5827
Kerstin G. Brooks, Broker 
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