Real Estate Tax Tips in Case You Missed Out or Procrastinate

If you already files it’s still not too late to take advantage of these tips and keep them in mind for next tax season.

1. Home Energy Tax Credit

This allows homeowners to take advantage of the alternative-energy upgrades.  So, if you decided to install solar panels, geothermal heating systems, or even a fuel cell, you can get a 30% of the cost of equipment.

2. Home Office Deduction

Both Renters and Homeowners can use this one.  As a general rule, you have to use part of your home consistently and exclusively for business purposes.  If using the “Simplified Option” you can multiply the square footage of your office (300 is the maximum allowed) by a rate of $5.  Using this deduction, the total amount is capped at $1500, but if using the “Regular Method” you can also deduct certain costs – part of your rent or mortgage interest, taxes and paid utilities.

3. Mortgage Interest Deduction

This can be used for your primary residence as well as a second home.  You can also apply them to both first and second mortgages as well as a home equity line of credit, they all qualify.

4. Tax Tips for Sellers

Those who sold a home in 2014 can deduct all the costs associated with selling your home including commissions, closing cost credits, staging costs, and any fees associated with the sale.  The IRS allows single people to keep $250,000 of profit from their home sale while joint filers can retain up to $500,000.  Any amount above that would be subject to capital gains taxes.

5. Moving expenses

If you relocate for work, you may be able to deduct those moving expenses.  The IRS states your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home.  Go online to the IRS site to calculate this with their handy Question and Answer format to confirm.

6. Double Check Everything

Correct social security numbers, names, if changed through marriage or divorce, and review for math errors or in figuring credits or deductions.  Don’t forget to sign your form, provide the correct bank account number if you want your refund direct deposited and ensure you have the correct routing numbers and the IRS filing PIN

Source: by Chrystal Caruthers

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