There are still a few things that a smart homeowner can do before the end of the year to save on their 2013 taxes.
1.
Pre-pay your property taxes
In
California, where property taxes are due twice a year, it may make sense to
pre-pay next year’s first installment.
2.
Make your January mortgage payment now.
If
you are planning to make the payment over the next few weeks anyway, why not
make it now and take the deduction?
3.
Make energy efficiency improvements
The
IRS tax credit for making improvements to a home for energy
efficiency–insulation, air conditioning or heating units, windows, among other
items–they can qualify for a tax credit of 10% of the cost, up to a lifetime
maximum of $500. Note that this is not a deduction, but a credit–a straight
subtraction from taxes owed. This is a time-sensitive allowance so it may make
sense to make these improvements before the end of the year
4.
Finalize your foreclosure sale
Before
the financial crisis, people who lost their homes to foreclosure and had the
remainder of the balance on their mortgages forgiven had to report that
cancelled debt as income and pay taxes on it. But in the midst of the
recession, with so many people losing their homes, Congress stopped taxing the
first $2 million in forgiveness of mortgage debt. This perk is coming to an
ending 12/31/2013. So if you have a home in the midst of a short sale or foreclosure
proceeding, put the pressure on everyone involved to get the deal done before
the year is over.
All
of these tips will help you to get a good start in 2014. Check with your
CPA to get more information on how to save money on your 2013 return.
Wishing
you and yours a very Merry Christmas! If you would like help planning
your next real estate move, give me a call. I always enjoy hearing from
you.
Nancy Puder is a real estate broker in Arroyo Grande, CA. You may contact her
at Nancy@NancyPuder.com or call
(805)710-2415. Follow her posts on Facebook Nancy Puder Realtor and click
"like".
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