Tax time is upon us again, but if you are finding yourself stressed out remember that many homeowner related costs are actually tax deductable. Make sure you’re not missing out on important home-related tax deductions. As always, please consult your tax advisor to find out which deductions apply to you, but here are some common deductions that may be beneficial to you.

Mortgage Interest Deduction

The interest that you pay on a home mortgage is usually tax-deductible. You are allowed to deduct interest on multiple mortgages, as long as they add up to less than $1 million. The one criteria being that the money was used for buying, building or home improvements. You should receive a “Form 1098″ from your lender which details how much mortgage interest you paid. To claim this deduction, you need to fill out “Schedule A”, under “itemized deductions” to record your interest deduction.

Home Refinancining Deductions

If you refinanced, you may be able to write-off the points paid for the new loan. But you’ll have to deduct them proportionately over the life of your loan. So, if your new loan has a 30-year term, you’ll deduct 1/30th of your points each year. A couple of things to consider: If you’ve refinanced before, and you have points from the previous refinance that you haven’t finished deducting, you can write off the rest of those points in the year you refinance.

Going Green Means Tax Benefits

Homeowners who make their homes more efficient with energy-conscious purchases may be eligible for tax benefits. A recent tax law change provides a tax credit to improve the energy efficiency of existing homes. The law provides a 10 percent credit for buying qualified energy efficiency improvements. To qualify, a component must meet or exceed the criteria established by the 2000 International Energy Conservation Code (including supplements) and must be installed in the taxpayer’s main home in the United States.

The following items are eligible:
• Insulation systems that reduce heat loss/gain
• Exterior windows (including skylights)
• Exterior doors
• Metal roofs (meeting applicable Energy Star requirements)

In addition, the law provides a credit for costs relating to residential energy property expenses. To qualify as residential energy property, the property must meet certification requirements prescribed by the Secretary of the Treasury and must be installed in the taxpayer’s main home in the United States. The maximum credit for all taxable years is $500 – no more than $200 of the credit can be attributable to expenses for windows. Read more from the IRS on how you may be eligible to receive this tax break.

Capital Gains On The Sale Of A Home

Once every two years, unmarried homeowners can profit from the sale of their home without having to pay taxes on the gains for up to $250,000, as long as the home was the seller’s primary residence for two of the last five years. Married homeowners filing joint tax returns do not have to pay taxes on up to $500,000 of the profits from the sale of their home.

Everyone has a different situation and you may actually qualify for other deductions you were not aware of, so always check with your tax professional. For information on taxes and being a homeowner, visit the IRS where you can learn more about Tax Information for Homeowners.

Buying your first home can be a very exciting experience- but it can also seem overwhelming and can leave you asking lots of questions. New home buyers are confused, anxious, and concerned when it comes to finding a real estate agent, choosing the house, and getting financing. Don’t let yourself be overwhelmed: Here are a few easy steps to get started!

Calculate How Much You Afford
There are two major factors that you need to consider, how much you can borrow and how much of a monthly payment you can realistically afford. Keep in mind you will most likely be pre-qualified for an amount that may not work with your budget. As a general rule of thumb, your annual mortgage payment, taxes and homeowner’s insurance shouldn’t exceed 28% of your gross income. Use this home buying worksheet to help you figure the costs.
In addition, you will also need to determine your closing costs, which can add up to 3% to 5% of your total home’s value. This closing cost estimator will help to give you a better understanding of the costs.

Do Your Research-Start Your Search Online
Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. With detailed knowledge about neighborhoods, school districts or any other factors that are important to you, you can narrow your search to find your perfect home even before you step foot outside!

Look For Flexibility in First Time Home Loans
What do you need to look for in a mortgage program as a first time home buyer? Here are a couple of tips and guidelines:
1. Flexibility – Make sure you get a program that offers a monthly payment you can really afford. Be honest with your mortgage broker if your payment seems out of reach. You may be able to obtain a three or five year ARM mortgage with a lower interest rate and lower payments or an interest only loan to get you into your home without giant mortgage payments.
2. Down payment assistance. If you are unable to pay a down payment there are programs available to help you. Down Payment Assistance Programs are loan programs designed to assist first-time home buyers with the required down payment and closing costs.
3. Long Term Goal – Are you planning on staying in this home forever, for three years, for five years? Communicate your goals to your lender because in situations like these they may have several mortgage options from which you can choose.

The Home Inspection
After you find a home and make an offer, a house inspection is often ordered. You will need to make arrangements to have the property inspected by a professional. Inspections may be required by law with the elements inspected varying by region, state, and/or your agreement.
A home inspector can provide you with a complete service that covers from the basement to the attic, as well as the exterior of the home, walls, chimneys, and fixed appliances such as refrigerators and stoves. Other specific elements that can be included: (not a complete list)
• Termite inspection
• Plumbing
• Water Quality
• Lead
• Radon
• Septic Tank
• Asbestos
• Electricity

It is important to hire a skilled professional who will be able to give you a comprehensive analysis of the home’s major systems and components—apart from anyone’s interests other than your own. Visit the American Society for Home Inspectors for more information and to find a professional in your area.

These are just a few of the subjects to consider when purchasing a first home. While it can be exciting to look at different types of homes, don’t be tempted into excess when first time home buying. Don’t purchase a home that is really more than you can afford and you need to be strong and stay within your budget. For more information on all the aspects involved in purchasing a home from start to finish, click here. Purchasing your first home does take research and work, but purchasing a home is the American dream and you can fulfill your dreams!

With the recent droughts in our area, conserving water is on everyone’s minds. Below are are a number of easy things you can do to help conserve water and reduce your water bill.

Ensure that everything is in working order. Be sure to regularly inspect your faucets as a dripping faucet can waste up to 20 gallons of water per day. Many times the problem is an old washer, but replacing it is easy and inexpensive. In addition, don’t forget to inspect your toilet, often the cause for a leaky commode is to replace the flange in the tank (the little piece that lifts when you flush.)

Minimize your water use. Many of us use more water than we should simply because we don’t think about it. Running the water while brushing your teeth or shaving, running the dishwasher when it is not full are some of the habits that can waste a lot of water. By changing these habits, you can save a lot of water-up to 1000 gallons a month! Do whatever you can to minimize the amount of water you expend.

Upgrade to water saving fixtures. Replacing fixtures doesn’t have to be expensive, and even if you do decide to spend a little more on an upgraded fixture, the money you save will more than pay for the expense. Some ideas are below.

Showerheads that save water. Three billion gallons of water flow through showerheads every day in this country–half of it unnecessarily. Most showerheads use twice the water needed for a typical shower. Consider installing a low-flow showerhead. It reduces the amount of water used; some models even offer pause buttons to allow you to stop the flow while shampooing.

Install a water conserving commode. A water-saving toilet uses half the water that a normal one does in flushing. Older toilets use five gallons per flush; newer ones often reduce this to 1.6 gallons per flush. When you multiply that by uses per day, per week it adds up.

Install faucet aerators. You can save around 25 to 40 percent on the hot and cold water running out of each faucet you aerate. Aerators restrict the flow of water, compressing it into a higher-pressure discharge than regular faucets. They also introduce air bubbles into the water, making it feel like there is a larger water flow. They reduce water flow by about 50 percent or more.

These are some ideas to get you started, for more information on what you can do inside your home to save water visit http://www.wateruseitwisely.com/. Keep in mind just because the fixtures save water does not mean they are not stylish; you will be surprised how beautiful and functional they are. Visit your local home improvement store for some ideas today!

Buyers are more interested in homes that are spacious with open floor plans, but even if your home is smaller or you have a floor plan that is not so open you can visually create a larger room. There are plenty of easy ways to add space without remodeling your entire home. Make your rooms look larger by trying some of these tips to visually create more space.

• Use a light and neutral color scheme to make your room look bigger. Cream colors and warm yellows are just a few of the best color combinations that can open up a tiny room into a bigger living area. Light colors make your room look bigger and brighter because they are reflective making a space feel open and airy.

• Mirrors can make your room look larger. Use a focal point and angle your mirrors towards it, which will give the illusion of depth. Mirrors also reflect both natural and artificial light to make a room brighter during both day and night. They bounce light deep into the room, making it appear larger. This is especially effective with near a window so the outdoors can be reflected, giving the room a more open flow.

• Reduce clutter and keep rooms tidy and organized. There’s nothing that makes a small space feel cramped more than having too much stuff. Keep decorative objects to a minimum, figurines are distracting. Pick up newspapers and magazines and put away unnecessary items from countertops in the kitchen and baths.

• Don’t cover your walls with a lot of pictures. Too many pictures on the wall can make a room feel crowded. One large painting works better than a group of small paintings.

• Minimize the amount of furniture you have in each room. If possible store any large and bulky furniture pieces. You want the potential buyer to see the house, not your furniture.

• Keep the floor as clear as possible. Take out any large rugs you may have, this will help to create an illusion of more floor space.

Consider these tips to help you create a sense of spaciousness. When in doubt on what to remove and what to keep, try to follow the ‘less is more’ theory. Excessive furniture and decorations contribute to the rooms looking smaller and more cluttered—and ultimately distracting potential buyers from seeing themselves living there. A clean, well-maintained, and spacious home is not only more marketable, but can often command a higher price.

We have all heard about the horror stories of innocent people who have had their identities stolen. Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. The FTC estimates that as many as 9 million Americans have their identities stolen each year. Identity thieves can empty your bank account, max out your credit cards, open new accounts in your name, and purchase furniture, cars, and even homes on the basis of your credit history. The unfortunate part is you may not even know this has happened until it is too late. You’ll get the headache and expense of cleaning up the mess they leave behind.

While you may never be able to completely prevent your identity from being stolen, there are some steps you can take to help protect yourself from becoming a victim.

• Review your credit report periodically. It is important to check to make sure that all the information contained in it is correct, and be on the lookout for any fraudulent activity. You may get your credit report for free once a year. To do so, contact the Annual Credit Report Request Service online at http://www.annualcreditreport.com or call (877) 322-8228. If you need to correct any information or dispute any entries, contact these national credit reporting agencies:
• Equifax: www.equifax.com
(800) 685-1111
• Experian: www.experian.com
(888) 397-3742

• Protect your Social Security number (SSN). This number is the most important personal identifier, so you must make it your top priority to keep it secure. Never carry your Social Security card with you unless you’ll need it. The same goes for other forms of identification (for example, health insurance cards) that display your SSN. If your state uses your SSN as your driver’s license number, request an alternate number. Don’t have your SSN preprinted on your checks, and don’t let merchants write it on your checks. Don’t give it out over the phone unless you initiate the call to an organization you trust. Ask the three major credit reporting agencies to truncate it on your credit reports. Try to avoid listing it on employment applications; offer instead to provide it during a job interview.

• Leave it at home. If you carry your checkbook and all of your credit cards, debit cards with you all the time, which is a bad idea; if your wallet or purse is stolen, the thief will have a treasure chest of new toys to play with. Carry only the cards and/or checks you’ll need for any one trip and keep a written record of all your account numbers, credit card expiration dates, and the telephone numbers of the customer service and fraud departments in a secure place–at home.

• Invest in a paper shredder. Do not throw out any financial records such as credit or debit card receipts and statements, cancelled checks, or even offers for credit you receive in the mail, rather shred the documents. This will prevent would be thief’s from going through your dumpster and finding important information that will help them to steal your identity.

The most important thing you can do to protect your identity is to be diligent and follow the above tips. Be smart and you will save yourself countless hours of trying to recover your good name and credit. Because these types of crimes have become so mainstream there are also insurance policies you can purchase that can protect you from the potential headaches. Do your homework and be safe!