energy-efficient homes

Benefits to Homeowners in Recent Tax Deal

by Cory Maguire on December 30, 2010

When President Obama signed the big tax bill that made it through Congress earlier this month, homeowners reaped some important benefits. According to USA Today, homeowners can count on:

Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insurance premiums. To qualify for the full deduction, homeowners must have an adjusted gross income of $100,000 or less. Taxpayers with AGI of $100,000 to $109,000 can claim a partial deduction. Borrowers can’t deduct mortgage premiums on home loans that closed before 2007.

Tax credits for energy-efficient home improvements. Home owners who install insulation, new windows or other energy-saving improvement in 2010 are eligible for a tax credit worth 30 percent of the cost up to a lifetime maximum of $1,500. Improvements must be bought and installed by Dec. 31. Those who delay improvements to 2011 still get a tax credit, but it is capped at $500.

The full article outlines several other parts of the deal that could impact your tax bill; as always, consult with your financial advisor to find out whether you qualify for some of the deductions.