Three tax deductions for homeowners that could be overlooked

Tax season is upon us and April 15^th is approaching quickly. You might be in the process of gathering all your documents for 2013 and heading to your CPA. Before you file, please be advised that you could qualify for tax breaks or deductions that you may not know about.  

Pay attention prospective buyers: buying a house means more tax deductions, and thus, more money in your pocket.

2013 Real Estate Buying a Home Tax Deductions

Green Home Improvements
Being green = more green. Green home improvements, like those that improve the energy efficiency can have an additional benefit besides a lower utility bill. That's right. Those of you have taken the pains to install dual-paned windows, insulation, low-flow plumbing appliances, tankless water heaters or solar panels, may be eligible for tax deductions. Not sure if you qualify? Ask your tax preparer or visit your state or city government website to research tax advantages.

Mortgage Interest Tax Break
Buying a home and getting a mortgage can be intimidating. But there are also inherent benefits to buying a home like some pretty significant tax breaks. As a homeowner you are eligible for two tax breaks: the mortgage interest tax break and the property tax deduction. Homeowners must itemize their deductions to be eligible for these breaks.

CODI Income Tax Exemptions
If you were one of the hundreds of thousands of American homeowners who was able to close a short sale or settle a defaulted home loan through foreclosure or partial settlement in 2013, you are likely eligible to take advantage of this exemption when you file your 2013 return. This is thanks to the Mortgage Debt Forgiveness Relief Act, where the IRS is granting a temporary exemption through December 31, 2013. There are talks that this exemption will continue into the next year.

Bottom line? There are many advantages to owning property. If you are considering buying a home this year, add this to your list of benefits: tax deductions.