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We can help guide you through a myriad of
tax and financial decisions
Refinancing Your Home May Add Tax DeductionsIn this recent climate of record low interest rates, many homeowners have seized the opportunity and refinanced their mortgages at better rates. Don't forget the tax effects of refinancing your home.Points paid on refinancing are not deductible up front, but must be amortized over the life of the mortgage (30 years, for example). But for many, this is the second or third refinance of the home. In this case, don't forget that you may have paid points on the prior refinance, which were not fully written off. The unamortized balance of those prior points is deductible in full when the loan is refinanced. It is important to remember that if you use part of the refinancing to improve your home, a proportionate amount of the points paid will be deductible in the current year. When you meet with your tax advisor to discuss your tax information, be
sure to bring the closing statement of your refinancing -- this document is
frequently a gold mine of extra deductions! |
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