Home EquityLoan Interestand OtherDeductions ContentsWe all have to pay income tax. However, there Introduction...…………………………….1is no reason to pay more than Uncle Sam IRS Standard Deduction……………..2expects. There are many legal ways to limithow much you pay. Did you know that you The Most Important Deductions..2could deduct home equity loan interest from The Most Important Deductions..3taxable income, and perhaps pay less tax thanyou thought? Here is how it works.
2IRS Standard DeductionThe Inland Revenue Service automatically allows a standarddeduction. The amounts for 2010, 2011 are $10,700 ifmarried and filing jointly, $7.850 if claiming head ofhousehold status, but only $5, 350 if single, or married andfiling separately. If your allowable deductions are higher than the norm, then you can claim that amount instead. If not, accept Uncle Sam’s generosity with thanks. The Most Important Deductions Mortgage Interest – You may reduce your taxable income by the full amount of interest you paid during the year concerned on your prime residence. Home Equity Loan Interest – The same principle applies to the interest you paid on a home equity loan. State and Property Taxes – Uncle Sam does not expect you to pay double income tax, and these are deductible too.What’s does that mean?For more terms and definitions,check out ForeclosureDeals.com’s Charitable Contributions – You may also deductglossary page:http://www.foreclosuredeals.com/G contributions made to listed charities. Check out the official listlossary.php first, though – not every charity qualifies.
3 To stake your claim and pay less tax (if your allowable deductions exceed your standard rate), request a ScheduleForeclosure Deals a Form, and complete it as required.12550 Biscayne Blvd, Suite 306Miami, FL 33181FAX: 1-347-402-6620Contact@foreclosuredeals.com Won’t it feel great to discover that you owe less tax thanIf it’s not a deal, we won’t list it here! you thought, after you claimed deductions like mortgageFind us on the Web:http://www.ForeclosureDeals.com/ and home equity loan interest? At ForeclosureDeals.com, we like to make homes as affordable as possible. We hope you found this information useful too.