As the year quickly comes to an end we encourage our clients to think about the tax year before it ends! Now is the time to consider incentivized purchases that offer tax rebates set to expire at the end December 31, 2013. Below is a list of 4 popular tax deductions or tax rebates that will end this year. If you have any questions about your return, making a purchase or to verify you qualify for a purchase, please call our office first.
- $250 TEACHER DEDUCTION
Teachers often have many out of pocket expenses that add up throughout the year. Currently teachers can do a unlisted $250 deduction on their return.
- PMI INSURANCE
This is the last year to itemize your PMI Insurance for your mortgage. The ability to deduct your PMI Insurance from your return will end as of December 31, 2013. This will not affect the deduction of your mortgage insurance interest.
- ENERGY EFFECIENCY REFUND
Are you windows drafty? Don’t wait until the spring to replace them, consider doing it now before the end of the year while the $500 lifetime credit is still available.
- THE EXCLUSION OF DEBT CANCELLATION OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS
If your bank forgave a portion of your home loan this is the last year this is not a taxable event. You may still be able to avoid taxes if you were insolvent but this is a more involved calculation that does not always apply.
DISCLAIMER: This is only a partial list of chances based on some of the most popular items for our clients.
SOURCE – IRS.GOV