Mortgage and Home Lending Newsletter
FEBRUARY 8, 2006 
One of the primary benefits of being a home-owner are enjoyed during the tax season. What is a tax write-off and what isn’t sometimes gets confusing, so here’s a brief overview.
What Can Be Written-Off:
- The interest you paid on your mortgages. If you have a 1st and 2nd mortgage the interest paid on each over the last year is fully tax deductible. This is why 2nd mortgage consultation and home improvement loans are so popular, they give you an extra tax break.
- Annual property taxes are fully tax deductible.
- If your home is located in a Mello-Roos district, this annual tax is fully deductible.
- Supplemental taxes you had to pay over the last year, because of a recent home purchase are fully tax deductible
- If you have a home office this could possibly be a tax deduction (consult your accountant).
- Deprecation and expenses on investment properties are fully deductible (consult your accountant).
What Can Not Be Written-Off:
- Private Mortgage Insurance cannot be written off. Some of you pay this monthly fee, and have nothing to show for it. If you’ve had your mortgage for over two years and your Loan-to-Value is now under 80% talk with your mortgage company about getting this fee removed.
- Homeowners Association Fees you’ve paid over the last year cannot be written off, unless it’s an investment property (again, consult accountant).
All of the above examples apply to primary, vacation, and investment properties; and while your saving thousands of dollars in IRS and State taxes hopefully the value of your property is increasing.
This is what makes owning property a great investment.
If you have any questions regarding real estate or financing please contact Doug Putnam. You’ll get honest answers.
He is always available, so call him today or apply online, and let him go to work for you! 619-286-9596
4025 Camino Del Rio South, Suite #300
San Diego, CA 92108
Doug's Direct Line: 619-286-9596
Fax: 619-286-9546
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