Tax Time & Real Estate
It's the start of another exciting year! But with that, you will soon be preparing your Income Tax Returns. If you purchased or sold last year you will want to make sure you have a copy of your Settlement statement from your closing to share with your tax professional.
You are probably aware that interest on the qualifying mortgage and property taxes paid on the home are tax deductible. However, sometime other legitimate expenses are overlooked. Points paid to secure the mortgage whether paid by the buyer or by the seller on behalf of the buyer may be deductible.
Interest to the end of the month shown on the closing statement may be deductible and it may not show on the year end statement supplied by your mortgage company.
A prepayment penalty to retire a mortgage or unamortized points not previously deducted may be deductible.
It's helpful to know what things to supply to your accountant so that all legitimate deduction may be taken. If you have a question about any of these you should rely on the counsel of a tax professional.