Did you buy a house in 2007?

Write−offs are the government’s way of rewarding taxpayers when they’ve done something the government likes. And to judge by the write−offs, the government likes it when people borrow money to buy a house. There are write−offs aplenty, many of which people often forget.

Here are a few:

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a “service fee” are not tax deductible. The question must be asked, “Does the fee apply to the use of money, or is it a service charge?” Discount points are paid to secure a lower interest rate. IRS Publication 936 lists a general rule that states, “You generally cannot deduct the full amount of points in the year paid. Because they are prepaid interest, you generally must deduct them over the life (term) of the mortgage.” However, there are conditions which, if met, make discount points tax
http://www.irs.gov/publications/p936/ar02.html#d0e942

Pre−payment penalties:
Unforeseen circumstances often cause borrowers to pull out of their mortgages sooner than expected. Fortunately,
pre−payment penalties are tax deductible, which helps ease the pain.

New Home! $375,000

 

This beautiful home is conveniently located just blocks from Alderwood Mall shopping and restaurants. It’s also on a quiet residential block with close access to I-5/I-405. Contemporary design features an open floor plan with vaulted ceilings and quality finishes. Enjoy a spacious kitchen with a large island, pantry, tile backsplash, and stainless steel appliances. Additional features are a gas fireplace in the living room, solid wood mill work, a large walk-in closet in the master bedroom, an attached two-car garage, and a private, low-maintenance backyard.

19311 24th Ave W Lynnwood, WA. 98036

Bedrooms: 5

Year Built: 2005

Heat Source: Forced Air

Sq. Footage: 1983 sq. ft.*

MLS# 28008904

*This information is provided as a courtesy only; buyer to verify all information.