Question: We’re just preparing out tax returns and are taking into consideration that we refinanced our home last year. What should we be watching out for?

                                   

Answer: When filing taxes each year, many homeowners tend to overlook a number of possible deductions that they may have either forgotten about or are unaware of. These deductions can add up to significant savings on taxes, aside from the savings on mortgage interest that most homeowners are already aware of.

One of these possible deductions is the amortized points on a refinanced mortgage. Any time a homeowner refinances, the points are amortized, or spread over the life of the loan. The points paid each year are typically the only points that can be deducted. But if a homeowner refinances a mortgage for the second or third time, any remaining amortized points that haven't previously been deducted can be deducted in full during that year's taxes.

These unpaid points are often forgotten, but they can help homeowners save a considerable amount of money, according to Harvey Berger, associate partner at Grant Thornton.
Ó1999 Information.Inc.

For answers to your real estate questions, call Allison at 970-468-6800 or 1-800-262-8442. Email - [email protected] or visit their web site at www.SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field.  Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.