1) Get professional help. You can miss so many extra deductions just because you didn’t know they existed.

2) Keep your receipts. This is especially useful if you use your home for an office.

3) Keep a lookout for your mortgage interest deductions.

4)The same goes for your state property tax. Who knew you home purchase can be its own tax lottery?

5) Whatever costs you paid for a closing is now a tax deduction. Claim it!

Although 2011 is over, there’s still a whole year ahead for anyone who is interested in the 2012 tax incentives for home ownership. Contact us at Bushari Group Real Estate for more info on loft and home purchasing.

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The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation’s highest foreclosure rate, and Reid is facing a tough re-election campaign.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

“If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts,” the Realtors said a a letter to lawmakers.

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.

“As the leading advocate for homeownership and housing issues, NAR commends these Senators for their attentiveness and sensitivity to thousands of qualified home purchasers, who through no fault of their own, are not able to meet the closing deadline of June 30 for the home buyer tax credit. Now we urge the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these home buyers,” said NAR President Vicki Cox Golder.

The measure was offered as an amendment to H.R. 4213, a tax extension bill now in the Senate.

NAR estimates that approximately 75,000 home buyers of distressed properties who have qualified for the tax credit and met the contract deadline of April 30 would not be able to close their transaction by the June 30 closing deadline. REALTORS® have reported as many as one-third of qualified applicants have been notified by lenders that their mortgages will not close before June 30 due to the sheer volume of applications in the pipeline.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

Golder said she also wanted to make this clear: “This amendment does not extend the deadline for home buyers to qualify for the tax credit; it extends the deadline for closing the transaction, from June 30 to Sept. 30. Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs.”

1. Who Qualifies?

Eligible homebuyers now come in two categories: first-time buyers (who have not owned a residence in the last three years); and long-time residences of the same home (lived in same principal residence for any consecutive five-year period during the last eight years). The second group of buyers do not need to sell their existing home in order to take advantage of the credit, but will need to live in their new residence for at least the next three years to avoid penalty. It is estimated that 7 out of 10 current homeowners qualify.

2. When is the Deadline?

A binding Purchase and Sale agreement must be in place by April 30, 2010, with a closing date of no later than July 1, 2010.

3. What are the New Maximum Income Levels?

The maximum income levels have been dramatically increased. The Modified Adjusted Gross Income limit is now $125k for singles and $225k for couples.

4. Has the Credit Amount Changed?

Not for first-time homebuyers. For first-timers, the maximum credit of $8,000 is still in place. For long-time residents of the same principal residence the full credit is $6,500. Buyers will only incur the penalty of repayment if they sell their new home within 36 months of purchase. It is also important to note that the purchase price of the home cannot exceed $800k.

For more information about the tax credit, Boston real estate, Cambridge real estate or Boston lofts, call Bushari Group today.