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Don’t Forget Home-Related Deductions When Filing Federal Tax Returns

The federal tax filing deadline for the 2011 taxable year is April 17, 2012. If you haven’t already filed your federal taxes, you might be looking for some itemized deductions you can take. If you own a home, you probably already know that you can usually take tax deductions on mortgage interest and on certain property taxes.

What many people may not know is if you own a second home, you can probably take the mortgage interest as a deduction on that one, too. According to the Internal Revenue Service (IRS), you must use it as a residence for a least a portion of the taxable year. The eligibility requirements are similar to those for your primary residence mortgage interest deductions. You can also take real estate taxes paid for state, local and foreign taxes that don’t include local improvement which increase your property value.

For more information, check out the IRS’s website (www.IRS.gov) or ask your tax professional.

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