The tax code changes all the time so I always like to consult with my tax gurus at
Picerrelli Gilstein and Co. L.L.C. Based in Providence, PG and Co. is a full service world-class accounting firm whose clients include large international companies, entrepreneurs, small companies, professional practices and individuals. Rich and Steve had CPA’s Barbara Kennedy and Michael Colucci in the studio to give us some great advice for tax time. Together they have over 25 years of experience and came armed with an incredible amount of advice for us. If your return is simple enough, you can prepare your own taxes, in fact the IRS has a listing of available
free-file software websites if your adjusted gross income is less than $57K, but Barbara recommends that people use a professional to avoid potential problems and make sure you have all of the deductions you deserve. PG and CO stresses planning and preparation; with the proper planning, the preparation of tax returns is a breeze. A good tax professional can evaluate any transaction you might have in terms of the tax implications and advise how to best meet your financial objectives. Here are some of that tax breaks available to homeowners when they itemize:
- Mortgage Interest: The amount of mortgage interest paid on a principal residence or second home is deductible. Taxpayers can also deduct purchase points, even if some have been paid by the seller. Seller-paid points that taxpayers claim as an itemized deduction reduce the cost basis of the home.
- Property Taxes: You can deduct real estate property taxes in the year paid, may also be able to deduct some of the taxes paid at closing.
- Energy Credits: There are still energy credits for 2011, limited to 10 % of the cost, up to $500.
- Home Improvements: Home improvements are not generally deductible on a tax return. Instead, the cost of improvements is added to the basis of the home and helps keep any gain below the $250,000 ($500,000 if married filing jointly) exclusion amount when the house is sold.
This Week’s Real Estate Insight: Buying a home is the biggest investment many people ever make, and the tax advantages can help reduce the cost of buying and owning a home and also leave you with more money when it’s time to sell. If you were a first time buyer in 2011, you may also want to do a tax projection for 2012. With all of the new deductions you will be able to take advantage of, your taxes should be much lower, and you can adjust the withholding from your paycheck to give you more cash now.
The tax code changes all the time so I always like to consult with my tax gurus at Picerrelli Gilstein and Co. L.L.C. Based in Providence, PG and Co. is a full service world-class accounting firm whose clients include large international companies, entrepreneurs, small companies, professional practices and individuals. Rich and Steve had CPA’s Barbara Kennedy and Michael Colucci in the studio to give us some great advice for tax time. Together they have over 25 years of experience and came armed with an incredible amount of advice for us. If your return is simple enough, you can prepare your own taxes, in fact the IRS has a listing of available free-file software websites if your adjusted gross income is less than $57K, but Barbara recommends that people use a professional to avoid potential problems and make sure you have all of the deductions you deserve. PG and CO stresses planning and preparation; with the proper planning, the preparation of tax returns is a breeze. A good tax professional can evaluate any transaction you might have in terms of the tax implications and advise how to best meet your financial objectives. Here are some of that tax breaks available to homeowners when they itemize: 
