Homeowner tax tips to get you the biggest refund
Feb 2011 26

We’re inaugurating a mortgage loans segment to the Boston Condo Blog. Over the coming weeks, you’ll be able to find the latest mortgage loan information courtesy of Brian Cav, mortgage broker and friend.

Here’s some tips from Brian for when you’re getting ready to file your federal tax returns. If you’re looking to buy a home or refinance an existing loan, you can reach Brian at bc@smarterborrowing.com and 617-771-5021. You can also sign up to receive his weekly emails with the latest mortgage loan news.

There are many tax benefits to home ownership. The three main deductible items are:

Mortgage Interest
Property Taxes
Mortgage Insurance

Here are some important documents that you’ll need handy for preparing your tax returns and maximizing your deductions.

First, make sure to have the Form 1098 that was sent to you by your mortgage company. This will list the mortgage interest and mortgage insurance you paid during the past year. Remember if you refinanced during the past year you will then see multiple Form 1098s, one for each loan.

If you bought or refinanced your home in the past year, you’ll also need your Settlement Statement (HUD-1) from your closing. This is important because IRS only requires a mortgage company to send a 1098 for $600 or greater. So if you have interest or deductible fees on your HUD-1 totaling less than $600 you will not be sent a 1098 and will need your HUD-1 as your proof. Finally, don’t forget to reference your property tax bills from the past year so you can include the correct amount on your tax returns.

Check out Brian’s http://smarterborrowing.com website for more.

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