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Christian InTech Articles - Home Business
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6 Ways To Choose Your Own Home Business
Deciding to work from home can be a good decision or a bad one. It depends of your attitude and your love for business. If you really make the decision to start a home business you have made the first step to succeed. But now the question is: "...
Mobile Home Loans give concrete shape to your mobile home aspiration
A mobile home is equipped with all the advantage of modern day
living. It can give you a new experience away from the
disturbances of towns and cities. Mobile home as the name
suggest is a movable home that is equipped with complete
plumbing,...
So What's All The Fuss About Working From Home Anyway?
"So What's All The Fuss About Working From Home Anyway?" © Dave Kendrick - All Rights reserved http://www.cruise2success.com Picture this. It's the middle of January. It's 20 below outside and it's snowing. At 6 o'clock the alarm goes off. The...
Starting an On-Line Home Business
When looking for a business on the internet you should consider a number of things. One thing is stability- with many scams on the internet you should look for a business that has been around a few years. Another is to see how many members...
Work at home and make money online - With or without a website
The fact is that a lot of people are making excellent online income working at home. And that everyone is not doing the same thing. There are lot of
things one can do to work at home and make money online.
Basically we can divide work at home...
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Deducting Points On Home Refinances
Any points that you pay in the refinancing of your residence are tax deductible over the length of the loan in question. The deduction is allowable only if the residence is your primary home and the new mortgage replaces a previous one and/or is used to improve the residence. To the extent that money is taken out to pay off credit cards and non-residence costs, the points may not be used as a tax deduction.
Big Deductions By Refinancing Twice
If you refinanced your primary residence twice during 2004, you may be in for a very nice surprise. A significant tax deduction can be created when you refinance twice in one year. If you refinance a mortgage, you accelerate the deductible amount of points from the first mortgage and may claim the points from the first mortgage all at once.
As an example, assume that I refinanced my home in January 2004 and paid $3,000 in points. Interest rates continued to drop through 2004 and I then decided to refinance again in August. Because I paid off the original loan with the refinance, I am
able to accelerate the value of the points of the January loan.
So, what tax deductions have I created for my 2004 filing period? Initially, I am going to deduct a percentage of the points off of my latest refinance. The deduction will amount to the total amount of points paid divided by the total months of the loan. This will not be a big deduction, but every little bit helps.
In addition to this amount, however, I will also deduct the full $3,000 in points that I paid on my January 2004 refinance! I am able to claim this deduction because I "accelerated" the deductibility of the points by paying of January mortgage with the August refinance.
By refinancing twice, I get a lower interest rate and a healthy tax deduction. Ah, the value of owning a home.
About the Author
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding
overlooked tax deductions and credits through a free tax return review.
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