House Talk

Real Estate Tax Breaks

 

Many real estate tax deductions are often overlooked by homeowners when it comes time to file.† If you purchased a home this year you probably paid points, or a loan origination fee that

can be deducted as itemized interest.† Any loan fee paid as a result of taking out a home improvement loan is also deductible.

 

Another area that is important to remember is the money paid at the closing on the sale of your home toward pro-rated property taxes.† Even though the buyer is responsible for forwarding the years taxes to the local tax collector, your share paid at closing is deductible.

 

Donít forget if you sold a home and the buyer took over your existing mortgage you can also deduct your pro-rated share of the mortgage interest for the month of sale.

 

If you pre-paid property taxes via an escrow account than these taxes, once submitted to tax collectors, are also deductible.†

 

You can find out how much was paid through your escrow account from your year end loan statement or by calling your local tax officials.

 

How Important Is The Neighborhood?

 

When shopping for a new home, how important should the neighborhood be in your decision making process?† More important than most people know.† You will have to live with your neighborhood for a very long time once youíve committed to purchasing a property.†

 

To be sure you have the information you need, here are some helpful tips for evaluating your new neighborhood:

 

If you will need to commute or will need to rely on mass transit to get to work, then make sure access is workable from the neighborhood you are considering.

 

Check into crime statistics for the area with the local police department, as well as checking with the community newspaper.† You want to know youíll be safe in your new home.

 

Take into consideration the prospect of re-sale later on.† What may seem like an incredibly good deal now may mean a difficult re-sale in a few years if the market for that area is declining in value.

 

Check out in advance any changes that may be in the works to the neighborhood.† You donít want to find out that a freeway will be going through your front yard once youíve already purchased. Talk to city hall for pending assessments or other changes.

 

Donít forget if you have children, or plan on having children to check into the school system.† Whatís their record like?† Are they close enough?† Is it what you want for your childís education?

 

Weíll work hard to assist buyers, and sellers in making a good move.† Count on us to make it easier every time.† Youíll be happy in the end that you found the perfect neighborhood, as well as the perfect house.