Tax Tip #5: Disaster Damage to your Home

#5 - Home Damage Caused by a Disaster

If your home experienced damage from a disaster, such as a tornado, hurricane or fire, you may be able to deduct the amount that was not reimbursed by your home insurance. To find out how much you are able to deduct, first figure out what your Adjusted Gross Income is. This refers to the amount that you will actually be taxed on after you subtract all of your expenses and deductions. These are also known as your "above the line" deductions.

Once you know what your AGI is, multiply it by 10%. Add $100. Then subtract that from the amount of damage not reimbursed. This gives you your damage deductible. If you need help, seek the advice of a tax professional.

For any mortgage-related questions, feel free to call Mortgage Jive at 877-828-8851. Click here to view Tax Tip #4.

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Tax Tip #4: Adding "Green" Home Improvements

#4 - Energy Efficient Home Improvements

Did you have a big remodeling project this year? You may be able to deduct some of those expenses if they were energy-efficient improvements by way of the Nonbusiness Energy Property Credit. Doing things like installing insulation, new windows or furnaces qualify. However, you can only claim $500 over your lifetime.

If you have installed a solar electric system, solar hot water heaters, wind turbines, fuel cell property, or geothermal heat pumps in your home, look into the Residential Energy Efficient Property Credit. This credit will give back 30% of what you spend on running those features. There is currently no cap on the amount of credit, except for on the fuel cell property. Find out if your home qualifies!

In fact, the IRS is suggesting that before you purchase energy-saving home improvement items, make sure to check for a certification statement first. You can find these on the packaging of the item, or through the company that sells them. For more information, view form 5695. Going green can really pay off!

If you have any questions, call us at 877-828-8851! Click here to view Tax Tip #3!

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Tax Tip #3: Paying Property Tax

#3: Paying Property Tax

If you own a home, you were definitely responsible for property tax. The good news is that it is deductible. You usually pay these taxes as part of your monthly mortgage payments, so your lender will have all the information you need spelled out on your annual statement. Sometimes real estate taxes can be deducted on your federal tax return whether they are deductible by the state's rules or not.

If you happened to buy a house this year, you no doubt paid plenty of property tax upfront. Be sure to find out how much of that you can deduct. It can be found on your settlement documents. Ask a tax professional for help if you have any questions.

Click here to view Tax Tip #2.  If you have any questions regarding your mortgage or a future mortgage, Crosscountry Mortgage can help! Give us a call at 877-828-8851.

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