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Filing 2010 Taxes: Do You Know Your Homeowner Tax Benefits?

Boston taxpayers who have not yet filed their taxes may run into a few surprises due to legislation from the end of the last year that extended some tax breaks, but ended others.

According to The Boston Globe, some individuals may be able to take advantage of a couple of 2010 tax breaks, like energy or homebuyer's tax credits. Others might realize that their debt-reduction attempts last year may have increased their current tax bill, given that forgiven debt on credit cards is considered taxable income.

"You have to pay attention to the details," noted Dana Levit, a tax preparer and financial planner and from Paragon Financial Advisors in Newton. For instance, Boston locals who bought a home between 2008 and 2010 and identified it as their primary residence may be dealing with first time homebuyers tax credit.

This credit was established as a tax-free loan of up to $7,500 and must be repaid in 15 equal installments every year, which starts with a homeowner's filing of his or her 2010 taxes for those who took the tax break during the 2008 tax year.

Many homeowners in Boston may also be eligible to receive certain homeowner tax benefits. Some of the top tax breaks on FindLaw's homeowner tax deduction list include deducting:

  • Up to $1 million on all your interest payments on any mortgage after you purchased a home;
  • Some of the interest paid on a home equity loan;
  • Most, if not all, of your property taxes from your income taxes; and
  • Some of your moving expenses from your income taxes if your job required you to move so that you may start work.

If you have other questions or concerns regarding homeowner tax benefits, consider talking to a real estate attorney who can inform you about other tax credits that you may be able to include when filing your taxes.

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