10 Often forgot or overlooked tax deductions and tax tips

Tax tips and tax deductions can save you thousands in taxable income.

The IRS is only interested in claiming what they are entitled to, though

It is up to you to decide what is exempt from paying taxes. IRS

have the literature to explain what can be deducted if you know what to ask for

or where to find it. Homeowners have the best advantage of specifying theirs

taxes and again, it’s up to you to know how to avoid paying too much. let us

Look at some frequently overlooked and legal deductions for your taxes.

Mortgages are obviously an important place to look for tax deductions, but did it

you know these:

Tax Deduction – Tax Tip # 1

Mortgages known as ‘points’, discount points you may have paid for

Get a better interest rate on your mortgage. These ‘points’ are deductible

on your taxes. One point is equal to 1 percent of the amount funded.

Tax Deduction – Tax Tip # 2

Refinancing your mortgage usually contains fees that you have incurred

restore your mortgage. There are many deductible fees on yours

taxes hiding in this process.

Tax Deduction – Tax Tip # 3

Change of job or stay due to a job that caused a relocation

more than 50 miles can allow you to deduct certain moving expenses

from your taxes.

Tax Deduction – Tax Tip # 4

If you paid a home loan prepayment fee, it may be deductible

from your taxes.

Tax Deductions – Tax Tips # 5

Refinancing your home can incur additional fees that you can deduct

your taxes. Ask your tax advisor for a list of refinanced deductible items.

Tax Deduction – Tax Tip # 6

Promoted mortgage rates are often overlooked on your taxes, checks

your final settlement sheet.

Tax Deduction – Tax Tip # 7

Property taxes on a home you sold last year, as well as property taxes

on your new home can be combined to give you a greater deduction too

your taxes.

Tax Deduction – Tax Tip # 8

Prepaid property taxes or prepaid mortgage rates are often overlooked.

Tax Deduction – Tax Tip # 9

Accident loss, if not compensated by an insurance claim, can also be one

large tax deduction. This is loss of property due to fire or weather related

damage.

Tax Deduction – Tax Tip # 10

If your home is on rented land, you may be able to deduct rent payments

for the country. There are specific guidelines here, so seek these requirements

from a knowledgeable tax advisor.

It is important that you keep as much of your hard earned money as legally possible

and it is your choice to find out what you can legally deduct and claim on your taxes.

For no more detailed help on what you can do to reduce your tax debt, don’t

hesitate to ask for help. It can save you thousands of dollars in a single year.