Deducting Points On Home Refinances Richard A. Chapo
Any points that you pay in the refinancing of your residence are tax deductible over the length of the loan in question. The deduction is allowable only if the residence is your primary home and the new mortgage replaces a previous one and/or is used to improve the residence. To the extent that money is taken out to pay off credit cards and non-residence costs, the points may not be used as a tax deduction.
Big Deductions By Refinancing Twice
If you refinanced your primary residence twice during 2004, you may be in for a very nice surprise. A significant tax deduction can be created when you refinance twice in one year. If you refinance a mortgage, you accelerate the deductible amount of points from the first mortgage and may claim the points from the first mortgage all at once.
As an example, assume that I refinanced my home in January 2004 and paid $3,000 in points. Interest rates continued to drop through 2004 and I then decided to refinance again in August. Because I paid off the original loan with the refinance, I am able to accelerate the value of the points of the January loan.
So, what tax deductions have I created for my 2004 filing period? Initially, I am going to deduct a percentage of the points off of my latest refinance. The deduction will amount to the total amount of points paid divided by the total months of the loan. This will not be a big deduction, but every little bit helps.
In addition to this amount, however, I will also deduct the full $3,000 in points that I paid on my January 2004 refinance! I am able to claim this deduction because I "accelerated" the deductibility of the points by paying of January mortgage with the August refinance.
By refinancing twice, I get a lower interest rate and a healthy tax deduction. Ah, the value of owning a home.
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
Cheney, Biden To Meet Privately At VP Residence AP - Vice President Dick Cheney, getting ready to hand off the job as the nation's second-in-command, will sit down with Vice President-elect Joe Biden on Thursday at the Naval Observatory.
Senate Advances Tax Break For Homebuyers Lawmakers hope the tax break, up to $15,000 for a primary residence, could lift the housing market. A final vote in the Senate on the stimulus plan could come on Thursday.
Hilbert Plans Residence Hall The push for more student housing is playing out at another Western New York college.
Wel De Stijl, Niet De Kosten Al meer dan twee decennia weet het prachtige tijdschrift Residence haar reputatie als ?dat blad met die mooie huizen? succesvol vast te houden. En er zijn wat mooie huizen langsgekomen in die jaren! Van ultraklassiek tot hypermodern, van artistiek vol tot streng minimalistisch. Want van Residence mag het best een beetje extreem. Lef is op interieurgebied een goede karaktereigenschap om te hebben. En dat het allemaal heus niet zo vreselijk kostbaar hoeft te zijn, blijkt uit de tips op deze pagina?s van de redactie van Residence.
Marilyn Monroe Family and early lifeâ Previous revisionRevision as of 05:15, 15 September 2008 Line 33: Line 33: The identity of her biological father is unknown. Monroe's birth certificate names the father as Edward Mortenson, with his residence stated as "unknown," <ref>Churchwell, p. 151</ref> Gladys Monroe had married a Martin E. Mortenson in 1924, but they had separated before Gladys' pregnancy.<ref name=Summers5>Summers, p. 5</ref> Several of Monroe's biographers suggest that Gladys Monroe used his name to avoid the stigma of illegitimacy.<ref>Churchwell, p. 15...
Gurkhas Submit Britain Settlement Petitions To Brown London, Sept.16 : About 40 retired Gurkhas took part in a protest demonstration outside British Prime Minister Gordon Brown's 10, Downing Street official residence on Monday to protest a government decision that does not entitle them to British settlement rights.
Worries Raised Over Dolphins In N.J. Rivers A group of bottlenose dolphins has been confounding humans since they took up residence in two rivers near the New Jersey shore six months ago. Now that it's winter, some people are worried they'll never make it out.
Uganda: Big Brother - The Week That Was After Morris's moment of madness of nominating Thami, the house has had its topsy- turvy moments, which are slowly, turning the house into one hell of chaotic, yet interesting residence for the housemates and giving us the viewers, a chance to muse at these children.
