When you file your taxes, you may be able to claim a tax deduction. A tax deduction allows you to save money on your taxes. Current tax deductions include mortgage interest paid and student loan interest paid. Including tax deductions on your tax return may lower your tax bill. Consult a tax preparer, accountant or enrolled agent to know for sure.
Update On Tax Changes
In 1997, the laws that taxed the profits from the sale of your primary residence were changed. Out went the 24-month rollover replacement rule and the one-time exemption. However, many tax questions remained unanswered.
Tax Tips For The End Of The Year
At the end of the year you can take some steps to prepare for your taxes for the next year. You can prepare for taxes by saving money to your 401(k) account or prepaying your mortgage. What else can you to do prepare for filing your taxes?
Buying A Home Increases Assets
Buying a home increases assets and builds wealth. The federal government introduces programs from time to time to encourage home ownership, especially for minorities. Learn about the housing market including federal government programs that are aimed to boost home ownership levels.
Making The Most Of Your Tax Deductions
If you made any donations last year, it's time to find the value of those deductions. Donated items must have been donated by the end of the year, and the total value of the deduction can't exceed 50 percent of your adjusted gross income. If the value of a donated item exceeds $500, you'll need to file a special form with the IRS.
2001 Tax Rate Changes Explained
Two weeks ago, as part of The Economic Growth & Tax Relief Reconciliation Act of 2001, the new tax rates went into effect. With all the hullabaloo about how much money everyone was going to save, the effects on your paycheck won't be as dramatic as all the fireworks that came along with the rhetoric. Take a look at how your paycheck might change:
After College Pay Down Non-Tax-Deductible Debt
Many people who graduate from college have a lot of student loan and credit card debt. Which debts should recent college graduates pay down first? You should always pay off your highest, non-deductible debt first.
Pay Off Mortgage With Home Equity Loan
A couple wonders if they should have paid off their mortgage with a home equity loan. They now no longer have a tax deduction. Paying off the mortgage with a home equity loan means they have a lower interest rate, which they can use to build their retirement savings. However, with retirement approaching, they need to evaluate how to pay off the home equity loan and keep saving for retirement. A fee-only financial planner can help evaluate their options.
Creating A Home Office That Works
The IRS has recently loosened it's requirements for a home office deduction. No longer does your home office have to be the only place that you have an office. It just has to be a place where you do a substantial amount of work. To be productive at home, you need a routine and a home office that offers privacy, security, and plenty of storage. By thinking through your home office uses ahead of time, you're more likely to end up with a working environment you can easily live with.
Mortgage Loan Decisions Include Points
When you're applying for a mortgage loan or refinancing a mortgage loan you'll face many decisions. Mortgage loan decisions include what type of loan you want: an adjustable rate mortgage or a fixed rate mortgage. In addition you can choose whether to lock your loan rate right away or to float the rate. When you apply for a mortgage you can also think about paying points to reduce the interest rate on the loan.