It’s that time of year again…taxes. Before filing there are some important questions you should ask, especially if one of your goals is to buy a home in Boulder or surrounding areas in 2015.
1) Do you max out your deductions to pay as little out of pocket as possible?
2) Are you considering buying a home in 2015?
3) Do you need a loan to purchase the home?
If you answered yes to these questions this information might surprise you. Act now, before filing, to arm yourself with the best balance of deductions to position yourself favorably.
Why Not Max Out Tax Deductions?
Not many of us are excited about sending money to the IRS, so looking for every possible tax deduction is understandable. However, mortgage lenders look at NET Taxable Income, not GROSS income. Self-employed buyers are the most affected as they tend to have the most control over what they claim. If you made $120,000 last year, but claim $30,000 in taxes, your mortgage company assess your available income at $90,000. This can make a big difference in how much a bank is willing to loan you for a home.
How Much Should I Deduct?
Everyone’s situation is different. Before filing, contact a reputable real estate agent, your accountant and a mortgage broker. These experts can help you determine the best tax strategy. Talk to a reliable mortgage broker about pre approval. Even if you aren’t looking to buy until later in the year, decisions about your taxes now can greatly affect your options later. Your accountant should consider how deductions affect your ability to qualify for a loan. Contact our BoulderHomeSource agents who can do a complementary appraisal of your current house and help you estimate a purchase price for your next home.
BoulderHomeSource...It's A Lifestyle