December 3, 2008  
Sign Up for Your FREE
Savings E-Newsletter Now!
Search the AHA Website:   
Exclusive Benefits
  24/7 Emergency Service
  Froople! Free Shipping
  Travel Values
  Grocery Coupons
  Home Loan Center
  Vision Discounts
  Improve Your Credit
  Moving Services
  Free Legal Network
  Home Contractors
  Real Estate Resources
  More Benefits ...
AHA Home Courses
  1st Time Home Buying
  Home Living
  More Courses . . .
  AHA Top Tips
  Article Library
  AHA on Your Side
  Government Links
  AHA Newswire
  More Resources . . .
About AHA
  What Our Members Say
  Our Guarantee
  Our Mission
  Privacy Statement
  Press Room
  Contact Us

  On Your Side

Featured Issue: Big Tax Breaks Benefit Homeowners

What Can Be Deducted . . . With What Limits?

Local taxes? Yes!

The general rule is that real estate taxes are deductible as long as they benefit the general public and assuming that all area homeowners are billed at a uniform rate. Here's how:

  • Get a copy of your real estate tax statement from the local tax authority, if you don't already have one in your files.

  • School district taxes are 100% deductible.

  • Remember to subtract any local tax refund you may have gotten during the tax year before tallying your deductible. Double-deducting is frowned on by the IRS.

Note: One important word to the wise. Much as you might wish otherwise, fees for trash pick-up are not deductible. Sorry.

What Else? Deduction Tips . . .

Mortgage interest, of course, is wholly deductible, which is a HUGE tax benefit enjoyed by homeowners. With the following provisos:

  • Joint-filing married couples can deduct interest on the first $1 million of the mortgage. Separate filers are capped at $500,000.

  • If your mortgage exceeds those limits, see Publication 936.

  • If, however, you have taken out a home equity mortgage and used the loan proceeds on anything other than to buy, build or improve your home, the IRS strongly recommends reviewing Publication 936 when filing your itemized tax return.

  • If you have refinanced or bought a second home? Again, the IRS considers Publication 936 an important resource for you or your tax preparer.

  • What if you pre-paid some of last year's interest? Be sure not to include any pre-paid interest for this year. Get a statement from your lender if you don't have one on hand already.


Home / Benefits / Courses / Resources / FAQs
Press Room / Privacy Statement / Satisfaction Guarantee
Contact Us / Terms & Conditions

©2005 American Homeowners Association (AHA)®
Stamford, Connecticut 06905.   All Rights Reserved.
Toll-Free 1-800-470-2242
  America's #1 Homeowner Organization Since 1994