What You Need To Take Advantage Of Tax Breaks

Everyone is looking for a tax break.  But did you know that some of those tax breaks can come from real estate?  If you are one of those people that is always looking for that next great deal, then look no further.  Here is a savings guide that will instruct you on what documents you will need to get your tax savings!

Mortgage Interest Statement - IRS Form 1098. The best real estate tax deduction on the books is the one that lets you deduct 100 percent of the mortgage interest you paid in a year.  This includes prepaid interest or points you may have paid at closing.

Property Tax Statements - You can deduct your homes loan interest, if you own a residence, you are allowed to deduct the property taxes you pay to your neighborhood city, county and/or state. You are not allowed to deduct any of the other miscellaneous expenses that some cities bundle  with the taxes they collect, like trash collection and street lights etc.

Settlement Statement or HUD-1 - If you bought or sold a house last year, you should have gotten a form called the HUD-1 Settlement Statement.  This is the form that records several things that could help you at tax time.  This might include prepaid interest, the prorated property taxes you paid at closing, and other closing expenses like origination fees and discount points. There are some states that will supply tax credits if you buy real estate foreclosures.

Moving Expenditure Receipts - Many people do not realize that their moving expenses are tax deductible,  if your new residence is at least 50 miles farther than your new office and than your old home was from your prior work location.  However, you do have to work full time.  Remember to keep your receipts though because you will be required to show proof of your expenditures for your move.  Meals and such are not allowable in your total.

Cancellation of Debt Statement or IRS Form 1099 - If you lost a residence to foreclosure, a short sale or deed in lieu of property foreclosure, then the lender may get some version of Form 1099 from their loan providers, charging them with earnings in the amount of the home loan debt that has been canceled.

Utility statements for your home office. If you are an employee that works outside of your home then you are not eligible for this deduction. But if you use part of your home solely for the use of your business, it is possible that you may be able to deduct a portion of your homes expenses such as utilities, repairs and replacements etc, as a result.

Receipts from energy efficient home improvements - Homeowners who have made improvements to their homes Under the Nonbusiness Energy Tax Credit,   qualify for energy efficient tax credits.

Mortgage Credit Certificate or MCC - This means if you own a house that you purchased within the last few years using a Home Mortgage Credit Certificate that was issued by a local housing authority, that Certification may qualify you for a fairly large tax credit.  This is  based on a percentage of the mortgage interest you paid - on top of your mortgage loan interest deduction. Of course some restrictions apply.

The bottom line is - if you own a home, then you have nothing to lose and everything to gain by getting a tax professional that can help you make sure you are getting every possible deduction.  Getting a tax attorney can also lower your possibility of an audit.  Don't forget to ask your tax consultant about the tax liabilities for any real estate transaction you commence with.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800