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Real Estate Tips
Tax Considerations >Tax Breaks

      Most homeowners are keenly aware of the interest tax deduction on their home loan, but there are many other tax breaks which are often overlooked at income tax time. Pro-rated property taxes and mortgage interest in the year of sale are deductible. You will find these amounts listed on your closing settlement statement. If you paid off your mortgage and had to pay a pre-payment penalty, it qualifies as tax deductible interest. If you paid an "acquisition mortgage loan fee" on a home loan, this fee can be deducted as itemized interest. Home improvement loan fees are also deductible. Any remaining loan fees from re-financed or paid-off mortgages are fully deductible at the time of the mortgage payoff.
      Certain items don't qualify as deductions, but can be added to the cost basis of your home, such as transfer taxes, recording and title fees, and special local property tax assessments for new sidewalks, streets, or sewers.
      Don't be intimidated by the tax code! A little research or consultation with an expert can help you maximize your real estate tax advantages.
     

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Real Estate Trivia
Q 
What was the greatest land grant ever given to an English subject?

A 
William Penn arrived in October, 1682, to take over his enormous grant that later became Pennsylvania and Delaware.
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Team M.C., REALTOR®, real estate agents and broker for Chico, Forest Ranch and Butte Valley, California home listings, property and land for sale - NUMBER1EXPERT(tm)

Mark Chrisco
RE/MAX of Chico

1140 Mangrove Avenue #D
Chico, CA 95926
Phone: 530-896-9345
Fax: 530-896-9307
Email: mark@mcsellschico.com

DRE #01063198


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