Taxes in June?!?!?!

Tax season is over, whew!  So why bring up this subject in June?!?!

Though it will be another 10 months before the looming April deadline rolls around,  it is important to pay attention to laws and changes, so that you can proactively save receipts and know what to expect.

If you have never itemized your taxes, or if this is the first year you will own a home, you may not know what deductions you are eligible for. 

The most common deductions for homeowners in 2013:

·        property tax

·        mortgage interest

·        points paid on a home loan

·        mortgage insurance

·        charitable contributions (cleaning out your closet or garage and donating)

                                                                                            

Don’t forget about the ”fiscal cliff bill” passed in Jan. 2013.  It will allow you credit for energy efficient improvements which include, but are not limited to:

Windows, insulation, a/c, heat pumps, furnaces, water heaters, roofs, and air sealing and duct sealing.  To see if an improvement qualifies check out the IRS website, or these websites below:

Home Heating & Cooling Equipment
http://www.energytaxincentives.org/consumers/heating-cooling.php
Home Shell: Insulation, Windows, Sealing
www.energytaxincentives.org/consumers/insulation_etc.php

Manufactures and retailers should be able to help you figure out whether a specific product qualifies, also.

 Other overlooked deductions are home improvements, or items that add value to your property. 

Though you can’t write off home improvements per say, keeping the receipts and invoices can help when the property is sold so you can offset any gains (calculated by taking your selling price minus original purchase price & provided you have lived in the property for at least three of the five years prior to the sale). 

Before remodeling or making home improvements check out what you can write off at:   http://www.irs.gov/taxtopics/tc701.html

Make sure you consult with your accountant or tax preparer because laws constantly change and are very complex.  They can help you understand how they affect YOU.  But this should help get you started.

If we can be of any assistance to you or someone you know, please contact us.  It is always our goal to make sure you can save money.  Follow me on Twitter @cscheer1961 to stay up-to-date on the latest changes in the market.  We are here to help!

Chris