Tax Time: Paperwork to Gather as a Boston Homeowner

It’s that time of year again! Hopefully you’ve started to think about filing your 2013 taxes, because April 15^th will be here before you know it. Usually, the process is usually pretty straightforward without any unexpected surprises or hang-ups. And, if you’re lucky, you’ll start the spring season with a nice refund check you can use to pad your emergency fund, upgrade your kitchen, or make an extra mortgage payment.

For those who decided buy a home in Boston in 2013, filing your taxes will be a bit more complicated than it has been in previous years. There are a number of documents you’ll need to gather and present to your tax advisor to cash in on the tax benefits you’re entitled to as a homeowner. To make sure you don’t miss out on a big return, be sure to bring the following paperwork to your tax professional this season.

Bring your 1098 form

Paying interest is an inevitable part about taking out a home loan. Fortunately, you can claim the interest you paid on your mortgage in 2013. The 1098 form you’ll receive from your lender will show how much interest you paid on the principle in addition to any amount paid for points and private mortgage insurance. The IRS allows you to deduct points for the tax year in which you purchased your home.

Hang onto your HUD-1

Those who decided to buy a home in Boston in 2013 shouldn’t rely solely on the information provided on the 1098 form when claiming mortgage interest. Bring your closing statement, commonly referred to as your HUD-1, to your tax advisor to ensure you’re deducting all of the mortgage interest you’re entitled to.

Your HUD-1 will also show how much you paid in real estate taxes in 2013. As a homeowner, you can deduct your local and state property taxes, so it’s crucial to bring this information along to your appointment.

Save your receipts and utility bills

Certain types of home improvement projects are tax-deductible, so long as they don’t add to the overall value of your home. Furthermore, if you work out of your home, you can deduct items such as your phone bill, Internet expenses, and costs associated with running heat and electricity. Save any applicable receipts, invoices, and utility bills and have them evaluated by your tax professional.

As a homeowner, tax time presents you with a tangible benefit to all of the money you put into your home in 2013. If you have yet to buy a home in Boston, consider the tax benefits you might be missing out on! While renters may get a few tax breaks here and there, the financial benefits of owning a home far surpass those of writing a rent check every month. When you’re ready to dive into the Boston real estate market, please give me a call. I’d be happy to help you find a property that suits your budget and preferences to a T.

Ken Snyder
Keller Williams Realty Boston-Metro
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