Did you buy a home last year? Here’s 9 Documents you WILL need when filing your Taxes this year!

1. Mortgage Interest Statement – IRS Form 1098

This allows you to deduct 100% of the mortgage interest you paid in a year – including prepaid interest or points you might have paid at close of escrow. You should have received in the mail a Form 1098 and if you itemize your taxes and claim a mortgage interest deduction, you must include this form with your taxes when you file.



2. Property Tax Statements

You are eligible to deduct the property taxes you pay to your local city, county and/or state. You can’t deduct such items as waste management or local assessments for street lighting, libraries etc., have your property tax statement at hand and make sure you’re only deducting what’s allowed.



3. Uniform Settlement Statement – HUD-1

Right after closing you should have received a form called the HUD-1 Settlement Statement, this form documents a number of items which may help you at tax time including again the prepaid interest, prorated property taxes and closing costs like origination fees and discount points.

If you can’t find a copy contact your escrow company for one.



4. Moving Expense Receipts

These are tax deductible IF you moved at least 50 miles away from your full time workplace, check with your tax preparer for full details.



5. Cancellation of Debt Statement – IRS Form 1099

If you lost a home to foreclosure or short sale you may receive some version of this form from your lender showing income in the amount of the mortgage debt that has been cancelled. This is classified as income and is taxable.



6. Utility Statements for your Home Office

If there is a part of your home you use exclusively and regularly used for business you may be able to deduct some of your home utilities and or repairs, again check with your tax preparer to determine which are legitimate or not.



7. Income and Expense Statements from Rental Properties

If you own rental property your tax situation is a little more complicated, you’ll need to have complete income and expense statements and once again your tax preparer can advise you on correctly ascertaining the depreciation of the property you can claim.



8. Contractor Receipts from Energy Efficient Home Improvements

If you installed any energy efficient improvements – new insulation, dual paned windows and furnaces for example, you may be eligible for a tax credit of 10% of the cost of the upgrades, up to $500 ($200 for the windows).



9. Mortgage Credit Certificate (MCC)

If you bought using a Mortgage Credit Certificate issued by a local housing authority it can apply as long as you live in the home and have a mortgage on it, but they only help defray taxes you actually owe, no good for an actual refund. The deduction is based on a percentage of the mortgage interest you paid, on top of your mortgage interest deduction.



You should always consult a professional tax preparer when you own your home or income property or if you have lost a home due to foreclosure or short sale.

Jane Loveday
DRE # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
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