Welcome Guest. Register Now!  


Homeowner Tax Home owner tax issues and rebates.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 08-15-2008, 02:55 PM
Junior Member
 
Join Date: Jul 2008
Posts: 4
Buying A Home

I am buying a home what tax breaks do I get and will I be charged.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 08-19-2008, 10:06 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
What are the deductions allowable if a Taxpayer Purchases a New Home in 2008?

If you purchase a new Principal Residence, you are entitled to deduct the Mortgage Interest along with the Property taxes on Schedule A of the Individual Tax Return Form 1040.

As such, a taxpayer who files Married Filing Joint Tax Return is entitled to a standard deduction of $10,900 in Tax Year 2008. ($5,450 for Single Filers).

Now, by electing to itemize on your 2008 tax return, you will be able to deduct your home mortgage interest and property taxes, in addition you are also entitled to a deduction of Charitable Contributions, State and Local Taxes paid either through estimated taxes or amount that have been withheld on your W-2.

Thus, the very fact that you would be purchasing a new home, will enable you to elect to itemize on your 2008 Individual tax return, assuming the total amount reported on Schedule A exceeds $10,900 that is readily available as a Standard Deduction allowance.

The only additional charge would be that charged by your CPA or Tax professional for preparing that additional schedule A, that may range from $125-$250 depending on your specific location.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
I have a home business and would like to know if I can omit depreciation on my home? JimiGood Sole-Proprietorship 1 02-17-2008 10:05 PM
Is it worth buying Annuities in my Retirement Account? Daso Investment Strategy 6 01-12-2008 11:28 AM
how far must my old home be to the new home in order to deduct moving exp's? Allard Miscellaneous 1 06-14-2007 12:24 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning