I have come to realize that there is much confusion, when it comes to what CAN and CANNOT be used as an itemized deduction on the Annual Income Tax Return. I have included a list of just a few things to help get you started. It is always recommended that you consult your trusted tax adviser for a more detailed list of items to keep record of.
DEDUCTABLE FEES:
Interest Paid on Principle Amount of Mortgage
Real Estate Taxes Paid
Taxes Paid At Time of Closing (Be Sure To Keep Your Closing Papers/HUD Statement)
Delinquent Taxes Imposed on The Seller Which The Buyer Pays
NON-DEDUCTABLE FEES:
Fire/Homeowners Insurance
Mortgage Insurance (P.M.I.)
Down Payment
Title Insurance
Monthly Utility Fees
Utility Service Deposits
Assoc./Condo Fees
Set Up/Doc. Fees
Items, Which Should Be Added To The Cost Basis Of Home:
Abstract Title Fees
Charges To Install Utility Services
Legal Fees (To Include Title Search; Prep. Of Sales Contract; Deed Fees; Recording Fees; Survey Fees; Transfer Tax Fees; Owner’s Title Insurance and any other fees the buyer agrees to pay for seller. i.e., Delinquent Taxes, repairs, etc.)
Premiere Business Services is dedicated to ensuring that you don’t have to pay more taxes then you owe. We are required to complete 52 continuing education credits through out the year to stay on top of all the tax law changes. With this knowledge on your side, accompanied with the Premiere Business Services Guarantee, your income tax return will be accurate year after year. Being a full service accounting firm, we are available all year to help plan income tax strategies for our clients. Please feel free to contact the Premiere Business Services offices with any questions or issues you may have.
Submitted by Matt Simpson, Premiere Business Services
(636) 970-0008
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