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The taxman cometh: What homeowners and renters should know

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    Tax tips from CFP Jerry Lynch

  • Duration 4:14
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Are -- gearing up for taxis what are some of the benefits -- realistic and what -- homeowners and renters need to know grab a pen and paper Jerry lynch is a certified financial planner and he's got all the tricks of the trade Gerri great to see -- great to see you I don't waste any time let's get right into buying is better than renting in a long -- -- -- because of the tax benefits.

Any appreciation of properties to tip one you take us through why buying is -- have been renting right now really three reasons first the boy you have the ability to get your money back when you own property.

Generally not gonna get rich owning your own primary residence but you get back which -- paid in mortgage and taxes when you sell a twenty or thirty years later -- -- the ability to at least break even.

If you -- you never have the ability to make any money.

And I think third Regis from a from a tax standpoint in the interest rates right now or about three and a half percent on the thirty year -- so.

You're gonna pay 450 dollars for every 100000 dollars that you -- if you buy 200000 dollar piece of property.

Your mortgage for the next thirty years is 900 dollars a month and that's facts about well now of course if you can get a mortgage.

And we know how difficult that is right now for people sue for recent home buyers or those about to buy a home what are the tax strategies.

This year.

What's -- tax strategies first talk to your financial planner in CPA.

You're gonna get back your interest which -- pain and interest that's tax deductible but -- you don't want to do was wait till April 15 of next year to get their money back so if you're gonna get 500 dollars a month.

In tax deductions make sure you're increasing your exemptions so that you're getting that money in your paycheck right now and you're not getting -- huge refund back in April.

For those who have been in a home for a long time you've been there 25 years you haven't quite paid off the thirty year mortgage yet but you've been there a long time what tax tips do you have for them.

Well I say again I think it again if you're using a home equity line of credit that's also tax deductible of 200000 dollars.

You know you don't really get any deductions of in the fact that you -- a tax credit.

If you do some things to make your property more efficient you get new windows new furnace you can get up to 500 dollars back for that which is nice.

If you're gonna do home improvement should you pay cash of those home improvements or would you advise people to do a home equity line of credit that what you're getting.

It's kind of envy that you carry an extra mortgage which in the right situation everything makes sense I don't have a problem use and home equity line I mean right now those interest rates are 23% so there's -- -- -- doing it and you get some nice tax deductions.

But I think you have to kind of take a look at your entire situation you know if if you're painting the house and doing some things to improve but I see it has been investment.

So I don't mind you taking out money for an investment I just don't want to see somebody take out a home equity line credit go on vacation right that's a waste of money spend -- -- -- car right.

Homeowners looking to sell during this tax season what tips do you have for those -- and it certainly April.

A lot of people -- put their houses on the market well you can get up to a 500000 dollars -- -- -- income tax free when you sell your primary residence that's if you're -- -- husband and wife of receivables 250000.

And that's not limited to one time.

So I have clients and have a house on the beach -- have a primary house around New York area.

When they sell their home my -- on the move down the beach for two years of your -- for two years.

You're gonna get that came out income tax free which is huge I did this a few years ago when I had to move and you literally had almost -- on the two year mark and you really need to show that you're living -- what is it four out of the seven days of the week -- -- -- six -- six months and one -- and one day is -- dictate -- -- that your -- -- that you wanna make -- -- documenting that.

Again the iris does not like people getting tax free money and if you're getting huge deductions are gonna take a look and make sure that the valley.

Final -- here for those that want to buy a home but right now don't have enough money for that 20% down payment what can you do during this tax season this year to try to get back home.

Well with the Obama with one of the the changes in laws for January this year now the -- private mortgage insurance is still deductible so if they're putting down less than 80% on their home.

At least that's deductible.

And again in the right situation I wouldn't mind if it took money out of their 401K they borrow.

To get it down payments so they can get into property locking low interest rates for the next thirty years establish himself on -- home.

And then from there on their their homeowner and that is you want to -- -- at home for awhile that's the idea you know is even in the year and a half that is case.

Okay great tips Jerry lynch if you missed any of these again you can always go to foxnews.com.

We will have the segment up there are so you can scroll down on a notepad a little bit later Gerri great to see this -- decision was locally.

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