Hello & Happy New Year!
It is the start of an exciting New Year! Before we get started working with new buyers and sellers, we wanted to say thank you again for letting us help you with your move last year. It is a pleasure working with you and hope you are enjoying your new home. Soon, you will be preparing your Income Tax Return for last year and will need a copy of your home’s closing statement to make some of the calculations. These statements sometimes get mixed up with the other important papers that go in a safety deposit box and this copy might save you some time and effort.
You are probably aware that interest on the qualifying mortgage and property taxes paid on the home are tax-deductible. However, sometimes other legitimate expenses are overlooked. Points paid to secure the mortgage whether paid by the buyer or by the seller on behalf of the buyer are generally accepted as interest and deductible.
Interest to the end of the month shown on the closing statement is qualified interest and it may not show on the year-end statement supplied by the lender. A prepayment penalty to retire a mortgage or unamortized points not previously deducted may be deducted on the return in the year they were paid.
It is helpful to know what things to supply your accountant so that all legitimate deductions may be taken. If you have a question about any of these, you should rely on the counsel of your tax professional.
If you have friends who are talking about moving, please tell them about The Exceptional Home Team. Referrals are important to our business plan.
Thanks and let us know of anything we can do for you.