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![]() News NotesOften Overlooked Tax-break for Last Year's BuyersPosted March 04, 2007 01:03 PM by Connie Talcott SmithTax-time is a great time to renew contact with your previous year's buyers. Chances are, you helped them purchase a new tax shelter and they are grateful as they deduct interest payments on their Form 1040. Loan fee points paid to acquire a primary residence in the year of purchase may also be tax-deductible. Since one point equals 1 percent of the amount borrowed, this can amount to several thousand dollars. Many lenders "forget" to include this loan fee on the borrower's year-end IRS Form 1098. As the agent on the purchase, you have a copy of the information on your buyer's HUD closing statement. Right now is the time to make copies of those closing statements, with the loan fees circled, and send them out to your 2006 buyers and buyers of your sold listings. Your buyers and their accountants will thank you and hopefully remember your thoughtfulness and send you referrals. If you think they do their own taxes, point them to IRS Publication 936 for a clear description of the deduction on Line 12 of Schedule A, Itemized Deductions. The savings could amount to a nice out-of-town weekend or more! |
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