It is that time of year, as the April 18th federal income tax filing deadline arrives. Millions of Americans are sorting through dozens of forms to determine how much money they will get as a refund as well as how much money they owe the Federal Government. One of those forms, the Mortgage Interest Statement 1098 Form may mean big savings for home owners during this 2011 tax season.
This form 1098, is received by the homeowners from their lenders. It shows the total amount of home mortgage interest paid during the year. If your are a homeowner and you and you itemize your federal income tax deductions, you can deduct 100 percent of your mortgage interest payments on your first or second mortgage up to $1 million of mortgage debt.
They can also deduct the interest paid on up to $100,000 of a home equity loan which many homeowners used as a line of credit. Many homeowners fall under this category and this means they may deduct all of the mortgage interest they have paid on their home each year.
There are other benefits to owning a home as well and they are as follows:
Deductions for real estate taxes
Deductions for mortgage interest
The capital gains exclusion for the sale of a principal residence
Also as a Florida home owner you are eligible to claim homestead exemption for your principal residence you reside in to reduce your property tax.
Another benefit when you purchase a home and you have put down less than 20% on the purchase, as a homeowner you have to purchase mortgage insurance, this premium can also be deducted from taxable income.
Purchasing a home offers many tax savings tat can add up thousands of dollars over several years. This is a benefit to own and home vs. renting a home.
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