Harrisburg, PA – January 21, 2008 – With the New Year upon us people are likely gathering their tax documents and scheduling an appointment with their accountant to have their tax return completed. As consumers prepare for this process, the Pennsylvania Association of Mortgage Brokers (PAMB) encourages everyone to make sure they take all mortgage-related deductions they are entitled to for their principal residence, such as interest paid on a current mortgage.
“This is a good opportunity for consumers to maximize the amount of money they receive back from the state and federal government as well as minimize the amount they have to pay,” said Frank Bowersox, President of the PAMB. “The PAMB encourages consumers to talk with their tax professional about how to take advantage of these deductions.”
Additionally, the PAMB recommends that consumers consider the following tax tips:
- If you have refinanced or sold your home within calendar year 2007, bring your settlement statement to your accountant to make sure you are taking all of the deductions possible.
- Private Mortgage Insurance (PMI) is tax deductible for consumers whose personal adjusted gross income is $100,000 or less per year. Speak with your accountant to see if you qualify for this deduction.
- Real estate taxes that you paid and property taxes are deductible.
- If you have recently refinanced, make sure to take appropriate credit for interest paid to your previous lender.
- If you are using part of your home for a business office, bring the total square footage of your home and the square footage you are using for the office, as well as your expenses including insurance so that you can discuss with your accountant the best treatment for taxes.
- If you have made home improvements, keep your receipts. Even though they might not be tax deductible they can be used to reduce your taxable gain when you eventually sell your home.
- If you have to make permanent improvements to your home because of a medical condition (prescribed in writing by your doctor), such as installing air-conditioning or handicap ramps, these expenses may be partially deductible.
- If you have moved more than 50 miles away, you can deduct the cost of moving yourself, household goods and vehicles to your new home.
- Use the 1098 interest form for the mortgage interest paid on an annual basis.
The Pennsylvania Association of Mortgage Brokers is composed of licensed mortgage professionals who strive to attain the highest degree of excellence and customer service available. PAMB members also subscribe to a code of ethics. For more information, visit www.pamb.org or call the Association office at (888) 311-PAMB.
