Homeowner's Catch Some Tax Breaks For 2008 and 2009

Submitted by taxman on December 26, 2008 - 9:21am.

For the 2008 tax year homeowner's will be getting a tax break for property taxes even if they are unable to itemize.  The deduction will be added to the standard deduction and is the lessor of actual property tax or $500 per taxpayer ($1000 for Married filing joint).  I think it is interesting that Congress feels that it is important enough to address this issue then limit the deduction to $500 per taxpayer.  That comes straight from the political handbook of tell them your helping them then take it back.

The energy credits available to increase the energy efficiency of one's home were lost for 2008 but will return for 2009.  This is a one time tax credit and applies to things such as insulated windows, additional insulation, insulated doors and more.  The rules on this can be pretty tricky in some respects so if you have upgrades you want to do contact our office for details and we can tell you what qualifies and how much credit you can get.

Finally, there is a first time home buyer's credit available.  Of course there are limits and rules and you can get the details here.

( categories: tax prep )