2009 Tax Tips for Orange County Real Estate Owners

Posted by Hartanov Team on Friday, February 12th, 2010 at 12:49pm.

Tax Season. It's that time of year again, and given the state of the economy, saving every penny is very appealing. As an owner of Orange County real estate there are many deductions and tax credits you will want to take claim on your 2009 return…provided you qualify of course!!

Here are a number of money-saving ways to reduce the amount of tax you owe--or even increase the amount of your refund!

First, let me explain the difference between a tax deduction and a tax credit. A tax deduction reduces (adjusts) your taxable income. A tax credit reduces your tax dollar for dollar. You do not have to itemize deductions to claim a tax credit.

Tax Deductions for Orange County Real Estate used as your Primary Residence

• Interest paid on your mortgage

• Refinancing points paid in 2009

• Real estate taxes

• Interest on major home improvement loans

• Mortgage insurance premiums

• Home improvements required for medical care

• Any sales commission, legal fees, or closing costs associated with the sale of [city] real estate in 2009

Home Energy Efficiency Improvements Tax Credits

Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. See Federal Tax Credits for Energy Efficiency for a complete summary of energy efficiency tax credits available to consumers.

Residential Renewable Energy Tax Credits

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies. Details are explained here.

Home Buyer Tax Credit

• First-time buyers who have not owned a home in the last three years are eligible for a credit of 10% of the purchase price, not to exceed $800,000. Ownership of a vacation home or rental property not used as a prime residence does not disqualify a buyer as a first-timer.

• Current owners of Orange County real estate, or those who have owned and lived in a principal residence for at least 5 consecutive years of the last 8, may qualify for a credit of up to $6500.

Be sure to consult a tax attorney as tax laws are chaing constantly.

The Hartanov Team is a Professional, Experienced and Results Oriented, Top Orange County Real Estate Team committed to meeting your needs. We use the latest technology to dramatically improve the speed, efficiency and innovative capabilities of every part of the service we deliver. We specialize in offering a new level of service helping people buy and/or sell Orange County area homes, condos, Short Sales, REO and Bank Owned, investment properties and 1031 exchanges, including relocation assistance for buyers who are becoming new residents of the beautiful ocean front region of Orange County. For more infomation about buying or selling your Orange County home, please call us direct at 949.481.3739 or via email at contact The Hartanov Team.

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