New Buyers Tips To Be Prepared For Tax Time

12115447311137093013home-finance.svg.hiAlthough tax day has just passed and it is a long time until next April 15th, if you are buying a house in the next few months it is a good idea to plan ahead to make sure you get the highest tax deduction you can.  Store your records in a safe place after closing so they are easy to find when preparing your taxes.  Most title companies will put all your documents together in a folder for you at the closing table.  Don’t lose that folder, it can be worth a lot of money at tax time!

Here are some documents you will need to have handy and in a safe place:

Mortgage Interest Statement IRS Form 1098

100% of the mortgage interest you pay during a tax year is deductible on your taxes.  This is a major benefit of home ownership so make sure you take full advantage of it.  Your mortgage company will send you a Form 1098 in the mail which reports how much interest you have paid.  My mortgage company sends me one every quarter so that I know where how much I have paid on an ongoing basis.  But the mortgage lender must send one at the end of the calendar year.  You can also go online and most mortgage companies will publish your copy there also.

Uniform Settlement Statement (HUD-1)

At the closing table you will have received a copy of your signed closing statement called a HUD-1 settlement statement. This will be in the file your title company gave you with all your important papers.  You need this form as it details prepaid interest, prorated property taxes and other fees that have the potential to be tax deductible.  If you can’t find it be sure to call the title company so they can send you a new one.  In January I send a copy of the closing statement to all of my buyers from the previous year so they have it handy when preparing their taxes.

Moving Expense Receipts

If you moved because of a job offer your moving expenses are tax deductible.  Generally, if you move more than 50 miles to be closer to your new job the expenses could be a tax deduction.  Check with your accountant and bring the receipts with you to the meeting.

Receipts For Energy Efficient Home Appliances and Improvements

If you have replaced windows, insulation or other energy savers you may be able to deduct 10 percent of their cost under the Non-Business Energy Tax Credit.  Again check with your accountant but have the receipts with you.

Property Tax Statements

Include a copy of your property tax statement with the information to your accountant as that could potentially be a tax deduction for you also.

Remember, it is always a good idea to have a professional prepare your taxes or at least review them before you submit.  But it is a good idea for you to be prepared to meet with the professional with all the paperwork necessary to get the best deductions!

Want a copy of your closing statement mailed to you in January?  Call me at 239-601-3174 to buy or sell your property.  I will make sure you have a copy of your HUD-1 statement in January just when you need it!

Remember, it is always toasty in Naples and you deserve your piece of Naples sunshine!




Leave a Reply

You must be logged in to post a comment.