There are countless advantages to owning a home, especially the tax deductions, so every year I like to sit down with Patricia Thompson, my go-to tax guru. Pat is the tax partner at
Piccerelli, Gilstein & Company, LLP, and is one of the foremost tax experts in Rhode Island. In preparation for the show, Pat created a comprehensive outline for deductions and strategies for home owners and real estate investors that I would be happy to email to you if you request it, but here is a brief overview of some of deductions homeowners can take:
- Mortgage interest, both first and second
- Real Estate Taxes
- Loan Points Paid on a Purchase
- Certain Closing costs
- PMI, mortgage insurance premiums.
- Moving expenses
- Energy tax credits
- First time homebuyer credit
- Selling the residence: Gain on sale of residence excluded up to $250,000 ($500,000 certain married individuals)
This Week's Real Estate Insight: The tax code is so complicated and changes so frequently that I would advise you to consult your own tax advisor to make sure you maximize the return on your investment. ?
