Don’t rouse the IRS or pay more taxes than necessary — know the score on each home tax deduction and credit.
Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2011 property taxes until 2012. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2011, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount. Continue reading
Most of us dream of the day we finish paying off our mortgage. However, very few people actually do some of the simple steps that it takes to pay off their mortgage fast! Beyond the comfort and security aspect, paying off your mortgage early is a bit like locking in a guaranteed investment return. It can also end up saving you thousands of dollars of interest costs in the long run. Here are a few tips to help you pay off your mortgage early: Continue reading
It’s that time of the year again! Daylight Saving Time will officially begin today. This means that most people in the U.S. will turn their clocks forward one hour on Sunday, March 11, 2012.
Since we set our clocks forward every spring, it’s a good time to do a few things around the house at the same time to ensure the safety of your family.
Make sure to take care of the following household tasks on Sunday: