Car Sales Tax Deductible

Posted onJanuary 27, 2012 - 7:21 am by Admin | 0 Comments

A list of tax deductibles commonly missed helps keep people financially informed while also putting a little extra cash in their pockets. Tax deductions reduce income, which in turn, reduces the amount of taxes owed. Sometimes this results in a bigger refund if the person has paid too much over the course of the year.

Deduct Mortgage Points

People who refinance their homes can deduct a portion of the points divided by the life of the loan. For example, if you pay $2000 in refinance points for a 20 year loan, each month you have the refinanced loan, deduct $8.33 over the lifetime of the loan.

Sometimes people forget about old points when the make a list of tax deductibles. If you refinance a mortgage, don't forget to deduct all the rest of the points from the old loan. In the previous example, if you refinanced again a year later, deduct the remaining amount of the $2000 you didn't deduct the previous year, then add that to the new deductible mortgage points.


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Posted in irs publication 600 optional sales tax tables