Did you purchase your first home 2014? Congratulations! You are on your way to building equity in an investment, and Uncle Sam is here to help ease the pain of high mortgage payments. If you purchased your home during 2014, it is important to keep all of your paperwork on hand to provide to your tax accountant for filing.

Tax deductions are available to you as a home buyer and can reduce your tax bill substantially. Below are just some of the tax breaks that are available to you for your 2014 taxes:

  • Mortgage interest
  • Points
  • Real estate taxes
  • Private mortgage insurance premiums
  • Penalty-free IRA payouts for first-time buyers
  • Home improvements
  • Energy credits
  • Tax-free profit on sales
  • Home equity loans
  • Adjusting your withholding.

If you are eligible for the First-Time Homebuyer Tax Credit, you will need to meet the following requirements:

  • Use Form 1040 to claim the credit [1040-EZ or 1040-A is not acceptable].
  • Attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit.
  • Documentation showing purchase of a home between the applicable dates.
  • File a paper, not electronic, return.
  • Regular wage & tax statement, Form W-2, W-2G or 1099-R, or enclose your 1040-V payment voucher, as applicable.

To claim the credit, you much attached a copy of your settlement statement. For most homebuyers, this will be a properly executed Form HUD-1, Settlement Statement.

For questions regarding the paperwork that you received at closing, please don’t hesitate to contact the experts at Real Estate Closing Solutions. We are Orlando’s choice for title insurance & escrow closing services.