April 15th may seem far away, but if you want to cash in on the real estate related tax perks of buying this year, you need to have these 4 documents in hand!
1. Mortgage interest statement (IRS form 1098). The meatiest real estate tax deduction on the books today allows you to deduct 100% of the mortgage interest you paid during the tax year.
2. Closing disclosure statement or (sometimes called HUD-1 settlement statement). You should receive one of these two documents right after closing on your home. The data on this form is invaluable during tax time. It details prepaid interest, prorated property taxes, and other potentially deductible fees.
3. Moving Expense receipts. - Moving expenses may be deductible if your move is closely related to the start of a new job. (Rule of thumb: if you're moving more than 50 miles to be closer to your workplace, you could be eligible. Of course, consult your tax professional for details on this credit and be sure to bring your moving receipts.
4. Receipts from Energy efficient home appliances & improvements. - Under the Non-business Energy tax credit, homeowners who make qualifying energy efficient upgrades may be able to claim tax credits! If you've recently installed energy efficient improvements such as insulation, windows, geothermal heating/cooling, you may be able to deduct a percentage of the cost.
**And to make the attorneys happy: Consult your tax professional or CPA to ensure you maximize your deductions and minimize the possibility of an audit. At Lunzmann Realty, Inc. we are not attorneys or tax professionals.