Are you looking for ways to cut your income taxes? Do what 34.6 million taxpayers already do to cut their taxes. They own a home and deduct the interest they paid on their home mortgages. The mortgage interest deduction cuts their federal income taxes by a total of nearly $77 billion.
What are the tax advantages of owning a Spring Texas home? There are 3 main tax deductions:
1. Mortgage interest – The interest you paid on your home’s mortgage. Your lender will send you a Form 1098 reflecting the amount of mortgage interest you paid for the year.
If you took advantage of the historically low interest rates and refinanced in 2010, you will receive a Form 1098 for each loan.
2. Property taxes – In Spring Texas, the school, county, and MUD taxes are deductible. If you escrow your real estate taxes, your lender will send you a Form 1098 reflecting the amount paid.
3. Mortgage insurance – If when you purchased your home you did not have a 20% down payment, you are probably paying for Private Mortgage Insurance (PMI). Mortgage insurance is to protect the lender in the event you default on your loan and he is not able to recover his costs through the sale of the foreclosed property.
If the loan you received on your Spring Texas home was between the tax years of 2007 and 2010 then the mortgage insurance premiums may be deductible. I say may because if your Adjusted Gross Income for 2010 is more than $100,000 (more than $50,000 if married filing separately) the deduction is limited. If your AGI for 2010 is more than $109,000 (more than $54,500 if married filing separately) the deduction is eliminated and not available to you.
The amount you paid in mortgage insurance will be reflected on the Form 1098 you received from your lender. Mortgage insurance is not your homeowners insurance.
Home Owners Association (HOA) fees are not tax deductible. Based upon the high annual HOA fees of some subdivisions in Spring Texas, a tax deduction is certainly needed.
Jill Wente was our realtor when we recently sold our home in Spring, TX. Jill's name was frequently seen... read moreJill Wente was our realtor when we recently sold our home in Spring, TX. Jill's name was frequently seen on for sale signs in our neighborhood and my wife decided that her research said Jill was who we should use.We met with Jill about one month before we were ready to list the property and Jill was very willing to speak with us and go through what she felt were the appropriate things that a home owner should be doing. She also had multiple home sales in the area and told us where she thought we should price our home. In addition Jill went through the entire home and gave us instructions on what needed to be done in order to make our home the most attractive. Before the home was put on the market, with a "coming soon" sign in the front yard, we had showing and offers. After the initial open house, we had 4 offers and selected one. The offers were at asking price or above. Unfortunately, the people who made the original offer we accepted, were not able to get their financing, but this didn't stop Jill. We kept the earnest money and relisted and immediately had 3 new listings, including the original family who opted out. After several discussions, we agreed to offer the home to the original family again, but included at Jill's recommendation very high earnest money requirements which the family accepted. The purchase went through and we set closing, moving out of our home to a new home near Austin, TX. Unfortunately during the move out, a leak developed in the laundry room and Jill found this. She immediately called us and we left everything in her capable hands as we were out of town. She contacted a plumber, had the pipe repaired, contacted a remediation company to dry the house, and another contractor to repaint the damaged areas. Jill also delayed the closing in order to get everything done. Jill was able to take a horrible experience and make everything right. She is the best realtor we have used and we have had at least 8 moves using 15 different realtors in the past. read less