Income Tax Tips for Homeowners
|March 30, 2000|
Start organizing the documents
you need to file your 1999 return.
"Many homeowners are entitled to
an income tax refund," says Richard
Roll, president of American Homeowners
Association. "Why let the
IRS hang on to your money any
longer than necessary?"
Here's what you'll need:
W-2 Forms from your employer;
1099 forms from your banks, brokers,
and mutual funds; 1098 form
from your mortgage lender reporting
your home mortgage interest; statements
from charities verifying large
cash donations or any noncash donation
higher than $250; medical bills
if your medical costs exceeded 7.5
percent of your gross income.
Here are a few reminders and tips:
Refinancers: Generally, the IRS
requires lender points in a home refinance
loan to be amortized over the
life of the loan. However, if you've
refinanced your home more than one
time, and you refinanced again in
1999, any points that haven't been
amortized can be deducted immediately.
Home sellers: If you owned your
home on Aug. 5, 1997, and sold it
before Aug. 5, 1999, you're eligible
for a portion of the $500,000/
$250,000 capital gains break (exclusion),
even if you don't meet the
requirement of having owned and
lived in the home for at least two
Direct deposit: The IRS has
begun offering the option of depositing
your refund check directly in
your bank, or directly into your brokerage
or mutual fund account.
IRA or Keogh contribution:
Make a deductible contribution to a
retirement account, anytime before
April 17. Keogh accounts must have
been established before Dec. 31,
1999, to qualify for the 1999 deduction.
Check the income limits to see
if you qualify for a deduction.
The IRS has a number of booklets
to help homeowners file and take
advantage of available deductions.
Many forms and publications can
be downloaded from the Internal
Revenue Service Web site at www.
irs. ustreas. gov or by calling (800)
For more information on any
aspect of owning a home, go to www.ahahome.com,
the American Homeowners
Association Web site.