7 Top Tax Advantages For Black Homeowners
by Roy Primm
I need a tax break
Higher expenses I cannot shake
If I could cut my tax
I could finally relax
And more money I'd make.
Homeowner tax advantages is one of the top reasons for purchasing a home in the U.S today. Besides profitable businesses the Government loves nothing more than homeowners, and they show it with liberal tax benefits and perks. You've earned them, so you should make sure you're taking advantage of all of them.
Although there are many more tax perks for the black homeowner, the following are the top deductions you should expect to get each year. Be sure to secure the services of a competent tax advisor for consultation on your specific tax situation.
Here are the top 7 tax advantages for black homeowners based on a recent University study.
1. Interest In Your Mortgage!
Around January or February your mortgage lender will mail you an I.R.S form 1098. The I.R.S form 1098 will show how much you paid in interest.
2. Property Taxing Taxes
Your property tax is based on the assessed value of your home. Property taxes is based on the value of your property. The average property tax rate is 1.5 percent of the assessed value or the purchase price of your property each year. Your local county and city government raise funds through the payment of property taxes.
Failure to pay your property taxes each year will cause your property to go into default. But it's good to know you can deduct your property taxes in the year you paid them. State and local property taxes can be deducted as an expense against income.
3. Cover Your Capital Gains
Did any of your stock holdings decline this year. Why not sell the stock and take the capital losses now. Use your capital losses from your stock to offset your income or other profits for the year. A case of turning lemons into lemonade don't you think?
4. Putting Energy Into Your Tax Credits
The new energy tax credits created January 2006 allows you to deduct 30% of your total expenses for the purchase and installation of water heating equipment. You can deduct up to $2,000 spread over the next 2 years.
For more information on getting home tax credits click here!
5. Remember This Point
A discount point is equal to 1% of a mortgage loan amount. Points are charged by mortgage lenders as a way to earn a profit. As a borrower you pay discount points as a way to reduce the interest rate of a mortgage loan.
The form 1098 lenders mail to you at the beginning of the year will show the amount of points you paid for the year.
Points are fully deductible the year you pay them. Points charged on a loan refinanced must be paid over the life of the loan.
6. Capitalize On Your Capital Improvements
Capital improvements include work you do to your home that can permanently increase value and extend your homes life. Examples of capital improvements is landscaping, a patio, a roof, installing solar panels, a new roof, a room addition or remodel, etc.
You can deduct any major capital home improvements you make on your property. Consult your tax advisor for further clarification.
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