When the New Year arrives a new tax season arrives as well. We have done a little research to find out what are the best available tax breaks for the new year.
1.Property Taxes: These are fully deductible. Any local city or state property tax refunds reduces your federal property tax deduction by the same amount. (source: clientdirect)
2. Home-Based Business Deduction: Home offices, if you use a room of your house as an office it can be, if qualifies, can be deducted. According to the Taxpayer Relief Act of 1997, you don't have to allocate a home's sale's capital gains between home and business. Talk to your tax attorney for more information on if you qualify.
3.Capital Gains Exclusion: Home buying investor's best tax shelter comes from provisions in the Taxpayer Relief Act of 1997 which allows married taxpayers who file jointly to keep, tax free, up to $500,000 in profit on a sale of a home used as principal residence for two of the prior five years.
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