Kathy Jackson

You know how you always hear how there are so many more benefits to buying a home in Henderson, KY over renting? Well, it’s tax time and that means those benefits are coming to fruition! If you purchased a home within the last year, you might be wondering what you can and cannot deduct as a homeowner. I have listed some of these items below for you to look into with your professional tax advisor. Just so you know, homeowners must file Form 1040 and itemize their deductions on Schedule A.

Henderson, KY Homeowners CAN Deduct the Following:

      1.     Your House Payment

Chances are you took out a mortgage that you pay monthly on your new Henderson, KY home. While there are generally several costs included in your monthly payment, the only costs you can deduct are “real estate taxes actually paid to the taxing authority, interest that qualifies as home mortgage interest, and mortgage insurance premiums.” (irs.gov)

2.     Real Estate Taxes

You are charged a tax on your property based on the assessed value of your home. You can deduct real estate taxes if “you paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year.” (irs.gov)

3.     Mortgage Interest

You can deduct your mortgage interest entirely if your mortgage is less than $1 million and as long as you took out the interest with the purpose of buying, building or improving your Henderson, KY home.

While this certainly isn’t an exhaustive list of what you can deduct this year, I wanted to make sure to mention some nondeductible expenses as well. Henderson, KY homeowners cannot deduct the cost of utilities, insurance (other than mortgage insurance premiums), charges for services, assessments for local benefits, transfer taxes or homeowner’s association assessments.

To view all of the tax advantages you can take advantage of as a Henderson, KY homeowner, check out the IRS website. As you know, I’m your Henderson real estate agent, not a professional tax advisor! Be sure to consult one to be sure you’re eligible for these tax advantages when you file this year. If you’re new to the area, just contact me and I can give you some recommendations in the Henderson, KY area!

Kathy Jackson
RE/MAX Superior, REALTORS
(270) 844-2607
kathyjackson_realtor@yahoo.com
http://www.HendersonHomesToday.com

  

Listed by: RE/MAX Superior, REALTORS

One of the most important fees that Henderson, KY home buyers need to consider when beginning their search is homeowner’s insurance. It’s important to invest in this to protect your property from accidental damage or liability. As Henderson, KY real estate agent, I feel that it is important to help guide people who are buying a home through the process of obtaining insurance. After all, if you don’t have a strong insurance policy on your home, then should there be any damage done, you won’t have the coverage and protection that you need to rebuild.

While this is a necessary expense for your home, rates can also skyrocket if you aren’t careful. My experience in Henderson, KY real estate has shown that your homeowner’s insurance costs can be kept under control, if you know what to avoid. Here are eleven things that you may want to steer clear from as you settle in to your brand new Henderson, KY home!

•    Dangerous dogs. Did you know that more than 4.7 million people per year are bitten by dogs? I completely understand the need to have pets. I am a huge dog-lover myself! If you have a pet that's on your homeowner insurance company's "dangerous dogs" list, however, you need to know that there’s a chance that your homeowner’s insurance rate will be higher. If you love your pooch, the extra cost will be worth it, but if you’re thinking about getting a dog, that is something to consider as you start shopping around.
•    Swim at your own risk. This one is a no-brainer. Sure, pools are fun to have in the backyard, but the number of deaths by drowning each year is a liability, and thus a prime target for high insurance rates. Once again, you need to consider carefully if you want to install one of these in the backyard. You need to be prepared for a large change in expenses.
•    Trampolines. Yes, these are fun, especially for the kids. They’re also not the safest toys you could own. Once again, choose wisely, because your insurance rates may soar should you choose to get one of these.
•    The old-fashioned treehouse. I know that they’re fun to build, and they give the kids a place to call their own, but a house up in a tree isn’t exactly known to be 100% safe. One small note: the height of a treehouse can determine how high the rate soars, so if you want to have one, keep it on the lower side.
•    Home businesses. Yes, you read that correctly. Running a business out of your home contributes to the amount that could be lost in an unforeseen accident. As a result, your premiums will likely be higher than if you have an off-site office. It’s also important to let your insurer know about your business in the event that there is an accident, or else you won’t be covered. This is definitely an expense to keep in mind as you set up shop at home!

As your Henderson, KY real estate agent, I feel that it is part of my responsibility to help my clients be aware of any aspect of their home that could cause extra fees or expenses. In the case of homeowners insurance, the list of things that could be considered a liability is extensive, and it’s important to keep them in mind as you factor in how much home you can afford. Since my primary goal is to help you have a smooth transaction through the Henderson, KY real estate market, I felt like I should point out some of the more common factors that could contribute to a rising homeowner’s insurance rate.

If you need any help with finding the perfect Henderson, KY home, don’t hesitate to contact me! I’d love to help you get started with finding the home of your dreams. I hope to hear from you soon!

Kathy Jackson RE/MAX Superior, REALTORS (270) 844-2607 kathyjackson_realtor@yahoo.com http://www.HendersonHomesToday.com    Listed by: RE/MAX Superior, REALTORS

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Tomorrow marks that time of year that is commonly known as tax season. As a Henderson real estate agent, part of my job is educating members of my community about all the benefits that come with being a homeowner, and getting certain tax deductions is only one of them. For many Henderson, KY homeowners, doing your taxes is difficult enough without factoring in all of the tax benefits. The complicated ins and outs of homeowner tax breaks can result in costly errors that will drive the IRS to your doorstep if you don’t take the right precautions and carefully calculate each deduction.

As with all complicated processes in life, some mistakes are more common than others. In order for you to see all the tax benefits that come with owning a Henderson, KY home, I thought that I’d outline some of the more common mistakes homeowners make on their tax returns:

Deducting the wrong year for property taxes is a common error for many a homeowner in Henderson, KY. In order to avoid this mistake, write down the amount you actually paid for 2011, no matter what the date is on your tax bill. The reason for this is because some taxing authorities work a year behind, and this tactic will help you avoid confusion with the feds.

Don’t confuse escrow for actual taxes paid. Many homeowners have their lenders escrow funds to pay their property taxes. Don’t just deduct the amount escrowed. Instead, deduct the regular amount on your tax bill. Your lender may not have collected an amount that matches the amount on your tax bill exactly, so use the number on the statement sent to you by your lender.

Many Henderson, KY homeowners fail to track all home-related expenses. File away all of your home repair, home maintenance and home office expenses as you go throughout the year. This will help you account for every possible expense and ensure accuracy on your tax return. I understand that documents can be hard to keep track of, so starting a folder early on each year will help you keep this paperwork organized and ready for when you sit down and start filling out your tax forms.

File all of your energy tax credits correctly. If you made any eligible, energy-efficient improvements to your home, you need to make sure that you fill out Form 5695 on your tax return. This will offer a 30% credit towards upgrades such as insulation and windows. Make sure you read the instructions carefully on both parts of the form, as it can be easy to mix up the numbers on this incredibly complex form. Pick a quiet place and stay focused as you fill this part out. It can be tricky, but it’s also well-worth it to get the tax breaks!

Part of being an experienced and knowledgeable Henderson real estate agent is learning the ins and outs of homeownership and the benefits that one can receive from buying a home. One of the best benefits of being a homeowner in the Henderson, KY area is the many tax deductions that you can receive on your annual return. If you avoid these common mistakes, I can guarantee that you’ll get the most benefit out of these tax breaks each year! It’s just a matter of going through each step carefully and making sure that you don’t overlook anything.

If you have any questions about buying a home in Henderson, KY, don’t hesitate to contact me! I’m here to answer your questions at any time. I hope to hear from you soon, and happy tax season!

Kathy Jackson
RE/MAX Superior REALTORS
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