Which Real Estate-Related Deductions Are You Entitled To?

Just like last year, taxpayers get an extra couple of days to file their returns this year: April 15 falls on a Sunday, but since April 16 is a holiday (Emancipation Day, which is observed in Washington, D.C.), the IRS has pushed the deadline to Tuesday, April 17, for the entire country.

At tax time, most homeowners are keenly aware of the big daddy of tax deductions: The interest accrued on monthly mortgage payments, which can amount to thousands of dollars. If you decided to pay your mortgage off early in 2006, as many did, you can also deduct the prepayment penalty fees from your taxes.

Other deductions available to homeowners are less well known. If you use an accountant, he or she will be well-versed on the deductions for which you qualify, as will your real estate attorney, so be sure to consult with either before April 17.

But if you’re like millions of Americans who file their own taxes, take special note of the following real estate deductions (many of which are overlooked each April:

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