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One of the most common questions we encounter as tax professionals comes from homeowners who want to know what they can deduct on their income taxes since they own a home.

The obvious deductions for homeowners are mortgage interest and property taxes, but there are many other deductions that you can miss if it is your first time filing Schedule A, Itemized Deductions. For example, did you know that you may be able to deduct the sales tax on a new vehicle purchase on Schedule A? This is just one of many tax deductions that too many homeowners forget to claim.

Below you will find an excellent list of tax deductions that you can use as a homeowner to maximize your Schedule A deductions.

New Homeowners

In addition to this list that we are giving you, we also would like to offer you an insanely low price on tax preparation for homeowners of only $99 for both federal and state return on the long form, a.k.a. "Itemized Deductions." The average price for tax preparation with itemized deductions is $229, so you can see how much money this coupon can save you as a homeowner.

This offer is valid only in our West Los Angeles office location and cannot be combined with any other offer or promotion. In order to get this $99 price on long form homeowner income tax preparation, you must say the secret code: "Andy said it was OK." Call our West L.A. Office today at 310-577-7530 to set up an appointment, or simply walk in and receive immediate service.

Also please note that this $99 long form itemized deductions tax preparation offer is only available until March 25th, so you must act now if you want this steal of a deal.

Meanwhile, in order to maximize your tax breaks as a homeowner, we would like to offer you a comprehensive list of tax deductions available to homeowners on Schedule A. With this list of homeowner tax breaks in hand, you can feel confident that you are getting every single tax deduction you are entitled to as a homeowner; if you bring this list to our office with the correct numbers for each expense, we will be able to complete your homeowner tax return easily and efficiently.

This is one of the best lists of tax breaks for homeowners on the entire Internet, so we hope you put it to good use this year and save lots of money on your 2011 taxes!

List of Itemized Deductions on Schedule A

 

Medical and Dental Expenses:

  • Prescription drugs
  • Doctor bills
  • Dentist bills
  • Health insurance premiums (only if included in gross wages)
  • Long-term care insurance premiums
  • Medical mileage to and from doctor / dentist
  • Eyeglasses
  • Contact lenses
  • Cost of smoking cessation program
  • Cost of weight loss program if prescribed by doctor, e.g. lapband surgery
  • Out-of-pocket cost while visiting doctor or dentist
  • Cannot take deduction for any expense reimbursed by insurance

 Call our West Los Angeles office location today at 310-577-7530 to take advantage of this $99 tax preparation offer for homeowners.

Taxes You Paid:

  • State income tax (such as withholdings paid out of paycheck during the year)
  • State Disability Insurance tax (paid out of paycheck during year)
  • Sales Tax, as calculated using IRS sales tax tables plus any sales tax paid on the purchase of an airplane, boat, or vehicle. BUT the catch here is that taxpayer must choose to EITHER deduct State and Local income tax, OR sales tax. You cannot deduct both, you must choose one: either state and local income tax, or sales tax. Often, if taxpayer makes a large purchase such as a new vehicle, it will be more advantageous to deduct sales tax, so make sure to claim sales tax if you bought a new car in 2011.
  • Part of the car registration fee in California is a personal property tax and is deductible on Schedule A. However, the part of the cost that is DMV fees is not deductible in this area.

Interest You Paid:

  • Mortgage interest on up to $1,000,000 of purchase cost loan for your personal home.
  • Mortgage interest on up to $1,000,000 of purchase cost loan for your secondary home.
  • Home equity loan interest on up to $100,000 of home equity loan for your personal home.
  • Home equity loan interest on up to $100,000 of home equity loan for your secondary home.
  • "Points" or "Loan Origination Fees" related to your personal home or your secondary home. Points on purchase can be deducted entirely in year paid, but points paid to refinance must be prorated over the life of the loan.
  • Mortgage insurance (applies to most FHA loans).
  • Investment interest. However, investment interest is deductible only to the extent of your investment income (i.e. if you have $100 investment income for the year, you can only deduct up to $100 of investment interest).

Gifts to Charity:

  • Gifts made by cash or check to IRS-designated charity (taxpayer must have proof of payment)
  • Non-cash gifts to IRS-designated charity, such as giving furniture to Salvation Army
  • If non-cash gifts are $500 or more for the year, must fill out Form 8283 giving more information about the non-cash donations that were made.
  • Mileage related to charitable activities
  • Out-of-pocket costs related to charitable activities

Call our West Los Angeles office location today at 310-577-7530 to take advantage of this $99 tax preparation offer for homeowners.

Casualty and Theft Losses:

  • Fire, hurricane, tornado, earthquake, volcano, or somebody steals your car.
  • These and other likewise disastrous events can be deductible on Schedule A, but only when the total casualty or theft exceeds 10 percent of the taxpayer's Adjusted Gross Income (AGI).
  • Form 4684 must be included to describe casualty or theft loss.
  • Insurance reimbursements must be removed and cannot be counted as part of deductible casualty or loss.

Job Expenses (Not deductible if reimbursed by employer):

  • Job travel
  • Union dues
  • Job education
  • Tools
  • Supplies
  • Uniforms and cleaning of uniforms
  • Professional License
  • Job-hunting expense
  • Work-related telephone (business percentage only)
  • Home office expense (only for qualified home office)
  • Books / manuals used at work
  • Safety equipment
  • Employment agency fees (must be job search related to same profession, not new profession)
  • Work-related mileage

Certain Miscellaneous Deductions:

  • Financial consultation
  • IRA or 401K custodial fee
  • Tax preparation fee
  • Safe deposit box (for example, safe where tax documents are kept)
  • Legal fees related to income or assets of the taxpayer
  • Hobby losses
  • Investment books and publications

Other Miscellaneous Deductions:

  • Gambling losses (only to the extent of gambling winnings being reported for the year)

Call our West Los Angeles office location today at 310-577-7530 to take advantage of this $99 tax preparation offer for homeowners.