Your accountant in Orlando should ask you, Did you just buy a home for yourself? Congratulations, you now have a place that you can call your own. So how much money did you spend in the process including down payment, repairs, closing costs and any other expenses that arose? Too much, right? Well, time for you to enjoy some tax advantages now.
Whether you bought a single family home, a condo, a town house or another residential property, you can reduce your taxes this year with these amazing deductions. We will quickly go over the main ones here, and your chosen accountant Orlando will provide you with the details.
Interest on your mortgage is one deduction that is loved by so many tax payers in the country. Why? Because it allows you to save so much money in taxes every year. You might be surprised to know that Americans save over $100 million by just this one single deduction.
Mortgage interest is a deduction, which applies to both your primary and secondary mortgages. However, your loan must be less than a million dollars, and you must itemize the deduction on Schedule A.
Do you know what mortgage points are? They are the percentage based fee, which your lenders charge to provide you with a loan. As long as you fulfill your certain requirements, you can use these points as a deduction. There are two ways in which this is possible depending on when you make the claim. If you do this in the year in which you take the mortgage, you can claim the whole deduction together. Should you delay this to the next year, you will only be able to deduct a fraction of the points. The good thing is you can do this for the entire mortgage term. So for instance, assuming your term is of 30 years, then every year, you can use 1/30points as a deduction.
Do you know how much your seller spaying in property taxes every year? Find the amount written in the statement, which your lender must have provided you with. If these taxes were not included in the escrow payments which you must have made with your monthly payments, then go through your cancelled checks. This is the amount which you can enter on the federal form. Property taxes are an itemized expense, and you can deduct them every year as long as you own the house.
Want to improve the value of your home? Install some energy efficient products and you will save in your bills. That is not just it. All the expenses incurred in this regard can also be used as a deduction. Depending on your case, you may be entitled to this deduction only when you sell the home.
So what effect did these above dictions have on your taxes? Quite a lot, right? Want to bring your taxes even more? Contact a reputed accountant Orlando and they will help you with it.
Options for Your Tax Refund
So you are getting a tax refund this year? great, what do you plan to do with it? Save it or spend it? The former is a better choice without a doubt. Still, if you do have to spend it, amaze sure you are doing something that will help reduce your taxes next year. You can use your refund to make a charitable donation or contribute it to a retirement account. Ask your chosen accountant Orlando, and they will guide you more about this.
So how does IRS give you this refund? Whichever way in which you want them to do. They can deposit it into your account or send it to as check. Here is some advice about this. If you have any confusion, ask an accountant Orlando.
If you want your refund deposited in multiple accounts
The IRS will deposit your refund in multiple accounts, but you will have to send additional forms with your return then. Fill out the form 8888; the directions on this form are pretty clear and easy to understand. If you have any queries, ask your accountant Orlando. A check is drawn on the form, and it guides you about the parameters which you should enter in different fields. You will have to provide information about all of you accounts.
Go through your 1040 form and make sure you have ticked the option that says spilt up refunds. This way the IRS will know you want your refund to be deposited in different accounts. This check box is given right below the section where you provide information for a single account. And by the way, if you want your refund in different accounts, leave the single account option blank.
The IRS lets you provide information of four of your accounts, but you can even go with two or three if you want to. Moreover, the amount going into each of the account does not have to be the same.
If you want your refund in a single account
If you want your refund in just one account, you only have to provide the account number for this. There is no need for an 8888 form for this; the option is given in the main 1040 from.
Married couples who file jointly receive a joint refund. This can go in a single account as well if it belongs to either of you.
If you want your refund to be used for bonds
The IRS gives you an option of purchasing bonds with your refund. Should you choose this option, the interest rate wile b adjusted once in a year.
The maximum amount which you can purchase in bonds is $5,000, and the amount you select must be a multiple of $50. If your refund is not a multiple of 50, you will have to provide your account information as well so that the remaining refund can be transferred.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt.