10 Often Forgotten or Overlooked Tax Deductions and Tax Tips

by Jimmy Wilson - Date: 2007-01-27 - Word Count: 450 Share This!

Tax tips and tax deductions can save you thousands in taxable income. The IRS is only interested in claiming that which they are entitled to, but it's up to you to determine what's exempt from paying taxes on. The IRS has the literature to explain what is deductible if you know what to ask for or where to find it. Homeowners have the best advantage of itemizing their taxes and again, it's up to you to know how to avoid paying too much. Let's take a look at some often overlooked and legal deductions for your taxes.

Mortgage Interest is obviously a key place to look for tax deductions but did you know these:

Tax Deduction - Tax Tip # 1

Mortgage fees known as 'points', discount points you may have paid to acquire a better interest rate on your mortgage. These 'points' are deductible on your taxes. A point is equal to 1 percent of the amount financed.

Tax Deduction - Tax Tip # 2

Refinancing your mortgage usually contains fees that you incurred to re-establish your mortgage. There are many fees deductible on your taxes hiding in this process.

Tax Deduction - Tax Tip # 3

Changing jobs or residence because of a job, that caused a move of more than 50 miles may allow you to deduct certain moving expenses from your taxes.

Tax Deduction - Tax Tip # 4

If you paid a home mortgage pre-payment penalty, it may be deductible from your taxes.

Tax Deduction - Tax Tip # 5

Refinancing your home can incur several fees that you can deduct from your taxes. Ask your tax advisor for a list of refinance deductible items.

Tax Deduction - Tax Tip # 6

Pro-rated mortgage interest is often overlooked on your taxes, check your closing settlement sheet.

Tax Deduction - Tax Tip # 7

Property taxes on a home you sold last year as well as the property taxes on your new home can be combined to give you a greater deduction on your taxes.

Tax Deduction - Tax Tip # 8

Pre-paid property taxes or pre-paid mortgage interest is often overlooked.

Tax Deduction - Tax Tip # 9

Casualty Loss if not compensated from an insurance claim can also be a huge tax deduction. This is property loss due to fire or weather related damages.

Tax Deduction - Tax Tip # 10

If your home is on leased land, you may be able to deduct rent payments for the land. There are specific guidelines here, so seek these requirements from a knowledgeable tax advisor.

It's important that you retain as much of your hard earned money as legally possible and it's your choice to find out what you can legally deduct and claim on your taxes. For more detailed assistance on what you can do to reduce your tax debt, don't hesitate to ask for assistance. It could save you thousands of dollars in a single year.

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Jim is an online writer and entrepreneur with some very clever insights on how to gain website traffic without having to pay for it. Check out his latest findings here: http://wealthsmith.com/website-traffic.htm

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