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Home Mortgage and Property Tax Deductions for 2010, 2011

Mortgage Interest and Property Tax Deductions

If you are a new homeowner or if you have owned your home for years, there are many home mortgage and property tax deductions available for both situations.

Previous Home Purchases

If you own your home you may deduct the interest on your home loan every single year that you own your home. You may also deduct the
property taxes for every year you own your home.

Deadlines For Closing on Home Purchases Has Changed

The deadline for closing on the purchase of a new home was extended in July of 2010 from June 30 to September 30, 2010. You must meet the
required deadlines to be able to claim the credit. By April 30, 2010 you must have bought or entered into a binding contract on a principal
residence. You must close on the home on or before September 30, 2010. You will need to attach Form 5405 to your income tax return form to
claim the home mortgage and property tax deduction credit.

If you are a homeowner, then you will most likely see the greatest tax benefits from itemizing your return.

You must itemize on your income tax return in order to take the following tax deductions:

  • Mortgage Interest Tax
  • Loan Origination Fees
  • Points
  • Mortgage Insurance Premiums
  • Sale of Your Home
  • Deductions on a Second Home

In order to claim these deductions you will need to have some documentation available to you such as your mortgage statement, property tax statement, mortgage insurance statement, and any loan closing information that lists the amount of fees paid to purchase your home.

If you are a new home owner, locate your Settlement Statement (HUD I).  If you cannot find it, your REALTOR can provide it or help you find it!

Published Sunday, December 26, 2010 2:12 PM by Sheila Bell

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