Forgotten Your Password?

Need to Register?

Gene Mundt

Helpful Info & Hints for First-Time Homeowners Filing 2012 Taxes

Monday, February 25, 2013 - Article by: Gene Mundt - American Portfolio Mortgage Corporation - Message

Helpful Info & Hints for First-Time Homeowners Filing 2012 Taxes

By now, you should have received the end-of-year information you need to file your 2012 taxes. If you were a new First-Time Home Buyer during 2012, this year will be your first opportunity to claim any tax savings available to you through your homeownership.

Homeowners can deduct expenses they sustain throughout the year for owning their home. But which ones?

Below is a list of some of those deductions your can itemize when you file Form 1040, Schedule A for taxes:

* Real Estate Taxes: The homeowner must have paid the taxes at the time of Settlement/Closing (the share you, the homeowner paid as opposed to the Seller) ... or to the taxing body during the year. This includes any payment made from an escrow account.

* Home Mortgage Interest Payments (Main or 2nd Home, 1st or Second Mortgage)

* Points paid on your home loan. Note: Points, as a general rule, cannot be deducted in their full amount within the year paid. Your must deduct them over the term of your mortgage. (Points are defined as: Charges paid, or treated as paid, by a Borrower to obtain a home mortgage. Points may also be described as Loan Origination Fees, maximum loan charges, loan discount, or discount points.) There is a particularly tricky definition attached to the payment of Points ... so please, contact your tax professional for guidance referring to this topic.

* Mortgage Insurance Premiums. Deductible in certain cases, as of 2012. (Qualified mortgage insurance is mortgage insurance provided by the VA, FHA, Rural Housing Administration, or private mortgage insurance (as defined in Section 2 of the Homeowners Protection Act of 1998 as in effect on Dec. 20, 2006)

* Home Energy Efficiency Improvements: The tax break (typically 10%) for this deduction is up to $500 for making certain improvements that increase a home's energy efficiency. The dollar amount of this credit is subtracted from the amount due to the IRS. Some of the tax breaks (varying rates depending on product) are available on a taxpayer's main home only. Others are available on second homes, as well. Properties must be located within the United States.

Energy efficient product costs eligible for this tax break (at varying rates) include:

* Energy-efficient windows and doors
* Water heaters (non-solar)
* HVAC (AC, ventilation, and furnaces)
* Residential small wind turbines
* Fuel cells
* Geo-thermal heat pumps
* Insulation itself
* Biomass Stoves
* Both metal and asphalt roofs
* Solar energy systems

Helpful Info & Hints for First-Time Homeowners Filing 2012 Taxes. The above represent some methods and products that will help new homeowners discover cost savings through their home ownership at the time they pay their taxes.

Because itemization is involved ... and because many of the above carry detailed rules and stipulations for being able to claim them, I recommend that you speak with a qualified tax professional, contact me for a referral, or seek out FREE help in filing your tax return through IRS-certified volunteers. This FREE IRS service can be found through its website, ... or by calling 1.800.906.9887 - or - 1.800.829.1040.

* Hoping to join the rank of Home owner ... or discover the benefits of owning your own home? Contact me today! We'll work together to get you on the best and most speedy path to home ownership possible.
I can be conveniently found at the following:

Direct: 815.524.2280
Cell/Text: 708.921.6331

Didn't find the answer you wanted? Ask one of your own.

Get an answer
Subscribe to our news feed.