Make sure you trawl through your shoe box now to gather all you need for your taxes, if you think you may qualify for these property owner tax perks. At least most are perks…

1. Dig out your contractor receipts if you made “green” improvements

Did you make any “green” improvements to your home this year? The Energy Tax credit allows for homeowners who have made certain energy-efficient improvements during 2011 such as  insulation, dual-paned windows and furnaces and other “green” improvements. It’s possible you may be eligible for a tax credit of 10 percent of the cost, up to $500. Find more information on the Energy Tax Credit  here

2. Did you pay interest on your mortgage last year?

Ferret through for your Mortgage Interest Statement – IRS Form 1098. This allows you to deduct 100 percent of the mortgage interest you paid in 2011. Your lender will send you form 1098 which shows how much interest you paid. Include this form with your tax return. IRS instructions here

3. If you are a homeowner, it’s likely you paid mortgage interest.

Property taxes that you pay to your local city, county and or State are deductible. IRS info here

4. Do you own rental properties?

If so, hopefully you also have a great accountant that will assess your income and expense statements. They will also make sure that you are depreciating the property in the appropriate manner. More info from the IRS here

5. Did you buy or sell a home last year?

If you bought, or sold a home with Patton Property Group, we have already mailed a copy of your HUD statement to you. You also received this at closing. You will need this for your taxes as there are a number of items that are deductible. IRS info here

6. Find receipts for your moving expenses

Moving expenses are tax deductible if your move is related to your job. You have to meet certain IRS time and distance tests. Rules on moving expenses

7. Did you loose a home to foreclosure, short sale or deed in lieu of foreclosure?

Find your Cancellation of Debt Statement – IRS form 1099. You should receive this form or something with similar details from your lender, showing the amount of the mortgage debt that has been canceled. The amount you were ‘forgiven’ is treated as taxable income by the IRS.  Article on how it works

8. Do you have a home office?

If you work outside of the home and just happen to have a home office, it is not likely that the utilities are deductible. However, the IRS states that if there is a part of your home that is “regularly and exclusively” used for business, you may be eligible to claim a portion of the costs of that home office including repairs and utilities. Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction.  Here are six things the IRS wants you to know about the Home Office deduction

Always consult with a tax attorney or certified public accountant regarding your tax liabilities and implications when you buy a property, sell a property, endure a short sale or (sadly) lose a home to foreclosure.

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This entry was posted on Thursday, February 2nd, 2012 at 6:49 pm and is filed under Asheville NC Real Estate. You can follow any responses to this entry through the RSS 2.0 feed.