Tax day is approaching and as you may know, your home offers a number of tax deductions and credits. Be SURE to visit http://www.irs.gov for the details on each item AND consult your tax accountant.

Mortgage Loan Interest: Interest on mortgage debt secured by a first and second home is deductible. Home Equity Loan Interest is also deductible within some limits.

Home Improvement Loan Interest: You can deduct all the interest on a home improvement loan provided the work is a “capital improvement.”

Points: You can fully deduct points associated with a home purchase mortgage, but not a mortgage broker’s commission.

Property Taxes: Property taxes or real estate taxes are fully deductible.

Capital Gains Exclusion: You may keep, tax free, a portion profit on the sale of a home used as a principal residence for two of the prior five years.

Home-Based Business Deduction:
Home offices that use a portion of your home for business could qualify you to deduct a percentage of costs related to that portion.

Selling Costs and Capital Improvements:
You can reduce your taxable capital gain by the amount of your selling costs.

Moving Costs: A move triggered by a new job comes with some deductible moving costs. Energy Tax Credits are available for the cost of energy waste reduction in your home.

This is not tax advice, please be sure to check with your accountant.

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