Consumer Resources
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Tennessee Association of Mortgage Brokers
618 Church Street, Suite 220
Nashville, TN 37219
www.tnamb.org
(615) 301-3048
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Tennessee Association of Mortgage Brokers offers tax tips for homeowners
NASHVILLE, Tenn. – With tax season approaching, the Tennessee Association of Mortgage Brokers encourages homeowners to make sure they take advantage of all the mortgage-related deductions to which they are entitled, including interest paid on a current mortgage for their principal residence.
“One of the great benefits of being a home owner is the ability to take deductions based on the amount of interest paid on your mortgage,” said Brian Short, president of the Tennessee Association of Mortgage Brokers. “Do-it-yourself filers and new homeowners sometimes don’t take advantage of this opportunity to reduce their federal income taxes. Everyone should be taking advantage of this, and if necessary they should consult a tax professional.”
Mortgage interest isn’t the only factor related to being a homeowner that can affect someone’s tax liability. TNAMB offers the following tips for consumers to make sure they are taking all the proper steps during tax season:
- Those who sold their home or refinanced in 2007 should consider allowing an expert or professional tax consultant to review the settlement statement to make sure deductions are maximized.
- Private Mortgage Insurance (PMI) is tax deductible for consumers whose personal adjusted gross income is $100,000 or less per year.
- 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, make sure the proper deductions are taken for this expense. You or your tax preparer will need to know 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 tax professional the best treatment for taxes.
- Home improvement expenses may or may not be deductible. Keep your receipts, and even those expenses that are not deductible 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.
TNAMB serves the mortgage broker industry by raising the level of professionalism through educational opportunities and by providing news and information to its members about legislative issues, new laws and regulations. For more information, visit TNAMB on the Web at www.tnamb.org.
For more information or to interview a mortgage broker in your area contact Lance McKerley at (615) 595-1444 or lance@mckerleycommunications.com.
