Enjoy Tax Breaks for Chicago Home Ownership

March 09, 2013

Tax deductions for Chicago real estateWith taxes right around the corner, it’s time to look for ways to save. Some of the oftentimes overlooked sources of deductions are your home and your mortgage.

For instance, the mortgage interest paid at settlement can be deducted if you choose to itemize your deductions. You can find this amount on your settlement statement, but is often overlooked. In addition, if you paid points in order to obtain your mortgage, you can deduct them if they were used for a purchase. You can still cash in on points if you refinanced your home, but it will need to be over the life of the mortgage.

General real estate also offers you tax benefits. If you sold a Chicago home in the past year, you can deduct the costs required to sell the home, including repairs, title insurance, advertising expenses and broker’s fees. You need to make sure that the repairs are made within 90 days of the sale to be deductible, and that the repairs were made expressly to better market the home.

Other deductions can be found in home loans for improvement or construction. With a home improvement loan, you can deduct the interest on that was taken specifically to increase the home’s value with structural additions such as adding a garage, installing a water heater or building a deck. Construction loan interest may also be deducted, but only in the first 24 months of the loan and only if it meets certain qualifications.

For more information about deductions and ways you can save money, consult a tax professional or visit the IRS website to browse their wealth of tax info.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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