With nearly three months left in 2015, jumbo-mortgage borrowers can make tweaks to cut their tax bill in April!
Autumn chores: raking leaves, weatherproofing, storing the patio furniture and preparing for next year’s tax returns.
With nearly three months left in the year, jumbo-mortgage borrowers still have time to make tweaks that can lessen what they owe in April. Here are some tips from tax experts—but be sure to consult a tax professional for specifics on your return.
First, the tax rules are tricky for home sellers who have claimed a home-office deduction. On the tax return for the year of sale of a primary residence, the seller can exclude as much as $250,000 in capital gains for a single person or $500,000 for a couple. But sellers who claimed a home-office deduction for depreciation have to pay capital gains taxes on the amount deducted, says Janet C. Hagy, president of accounting firm Hagy & Associates in Austin, Texas. This “recaptured depreciation” is taxed at a 25% rate (unless the seller’s income-tax bracket is lower than 25%). To view full article click link below.
Tips for Tax-Savvy Homeowners