The IRS Deductions Blog

Posts Tagged ‘mortgage’

Items on Amazon Right Now for Is Mortgage Deductible From Zakat:

Question: what can I itemize on my tax return?

I spent over 20,000 in home improvements. Things like a new pellet stove, new floors, new window treatments, paint, new sliding glass doors, new deck, all work was done ourselves. We purchased a new car but not one of the alternate fuel vehicles (2008 ford focus) can I use the tax payed on the car purchase? What else can I use as an itemized deduction? I know for sure I can use my real estate taxes and my mortgage interest, but what about my school taxes? hot water heater? refrigerator? gas (not for work) gas (for work travel out of state)?park pass? sales tax on food, clothing, home cleaners…? and last,if my husband gets a per-Diem in his check can he use his work expenses as write offs (hotel rooms, clothes, gas, food)?

Answer: You can only claim a insulation deduction (new windows, weather striping, storm doors) up to $1000. You can’t claim the tax on the car you purchased.

I would say you need to talk to an accountant because you don’t want to claim something wrong and the IRS audit you and charge you interest and penalties for stuff done wrong.

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The Hindu Business Line : Vedanta-Cairn deal: Tax Dept hopes to collect a tidy sum

The Finance Ministry is hopeful of collecting a tidy sum as capital gains tax from the Vedanta-Cairn Energy Plc deal announced today in London. The deal involves part sale of Cairn Energy Plc’s shareholding in Cairn India to the London-listed Vedanta Resources.

Recovery: Vehicle Tax Deduction – January 2010 (ASL, Captions & Voice Over)

Question: Are settlement costs from a reverse mortgage deductible on my income taxes?

Answer: Mortgage interest is deductible in the year paid. That being said, it’s important to note that the IRS considers points to be amortized over the life of the mortgage (this is in fact a grey area, some tax courts have held that the points are deductible up front.) How much money are we talking? Is it worth fighting with the IRS? If so, go to a CPA for preparation. If not, decide whether you want to risk it or not.

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Should Home Ownership Be the American Dream?

There are bigger questions to ask about how we approach home ownership in the U.S.

Mortgage break costs – are they tax deductible? for property investors?

Question: bought first home, now looking at paying off debt vs saving?

I recently purchased my first home and will receive the 8k 1st time homeowner credit. My mortgage aside, I am looking to payoff some debt and would like some opinions. After my mortgage and personal expenses, I will have about 2k per month and a minimal amount of savings (2k), put most into home down payment. Here are my loans

Answer: You should payoff the 401k loan first. If you get laid off the 401k loan has to be repaid within 60 days or else you will be charged a 10% penalty plus federal and state income taxes.

That can amount to up to 50% of the amount distributed and you don’t need a $1,000-$1,500 tax bill if you are laid off.

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Horner Wants Cap on State Mortgage Deduction

  St. Paul (AP) _ as Minnesota governor, independence party candidate Tom Horner says he would “take a hard look” at tax code carve-outs, including deductions homeowners take on mortgage interest.   Horner said Thursday he favors capping the tax deduction homeowners can claim, although he didn’t set an amount.   read more

Drew Miles | Tax Deductions For Homeowners

Question: Am I being charged too much from my mortgage broker?

Underwriting fee 450, application fee 275, commitment fee 250, processing fee 550.

Answer: The fact that they’re charging you anything at all for all those fees is a sign that it’s too much. When a mortgage broker secures a loan, they get paid a commission from the lender (thousands of dollars and the amount depending on the type of loan). No-cost mortgage brokers will put you into a loan that might have like a half-percentage-point higher interest rate. But, that gives him a higher commission. They then take part of that commission and pay all of the closing costs for you.

Since your rate is so low, the broker may not have gotten much of a commission. So, he’s passing those costs on to you. I would contact a different broker and see how much it costs for a similar loan product, and then go with the one that makes the most financial sense.

BTW – I recommend that people always go with mortgage brokers rather than dealing with lenders directly. Brokers get daily rate sheets from numerous lenders for various loan products. If you go to a specific lender, you’re pretty much stuck with only the products they offer, which might not be the best priced product available.

Also, if the underwriters hold up your loan and even disapprove it, you have to find another lender who will approve the loan and you start over again from square 1. Mortgage brokers can submit multiple applications for loans and you can then choose from the ones that were approved.

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Want to put $2,900 in your pocket?

Have you looked at your tax withholding lately? The average IRS refund this year was $2,900 and three out of four taxpayers got a refund. So you might want to take a look at your withholding and adjust it so you get the money in your pocket now…

Discount Points – Florida’s Hometown Mortgage Lender.wmv