Less than two weeks remain in the year, but homeowners still can save on 2013 taxes by following a few tips. http://onforb.es/18PdzVk
Consider these tips to be your Christmas present to yourself!
6. Pay your taxes. Property taxes are a huge bite in Texas, and not getting credit for payment in 2013 can increase your Federal Income taxes.
5. Likewise, you can pay your January 2014 mortgage principal and interest in December 2013 and get an extra deduction boost this year.
4. If you sold your home in 2013 consult a tax accountant to confirm that you can exempt $250,000 for an individual or $500,000 for a couple from the taxable gain, if you lived in your home for two out of the last five years.
3. Consider a deduction for a home office. Some question the benefit, but its $3 psf up to 500 sq ft. Key is regular and consistent use.
2. Clean out the closets and the home office and donate to charity. Clothes and electronics both qualify for a deduction – and can save you money while decluttering the house.
1. Make energy efficient improvements. It’s kind of late to start those now, but the winter is a great time to make a buy on an air conditioner, on additional insulation or double pane windows.
Homeownership does provide meaningful tax deductions, which usually are estimated as total deductions (mortgage interest and real estate taxes) x your tax rate. Do the math quickly and you can see how it adds up.
In fact the mortgage interest deduction is the one common deduction that puts most of us in the itemized class.
Congress will talk about scrapping the mortgage interest deduction again next year. When they do, please write your Congressman and urge him/her to support the MID.
Finally…Merry Christmas…Happy Hanukka…and Joyful Kwanzaa!!!