The Real Deal New York

3 real estate tax breaks a lot of New Yorkers overlook

These exemptions and deductions can add up to real money -- if filers actually take them

February 28, 2014 12:40PM

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TacIt’s tax return season, and there’s no reason homeowners shouldn’t get back every dollar they deserve. But who really has time to go over all 70,000 pages or so of the tax code to find which credits they’re eligible for?

Here are three, often overlooked, tax breaks that many homebuyers could qualify for.

Have a green home? Here’s your money back. 

According to Forbes, homeowners who have made an effort to make their homes more energy efficient aren’t just saving on their utility bills — they can save on their taxes, too. New Yorkers are eligible for green incentives like a residential solar tax credit and up to $3,000 in rebates for installing Energy Star high efficiency appliances, according to reports.

Did you itemize your deductions? Take this too. 

New Yorkers who pay a premium on mortgage or property tax should look into itemizing, Forbes says. Only about 63 percent of homeowners itemize deductions. Those who do could qualify for a sizable mortgage interest tax break or a property tax deduction, Forbes reported.

Has your bank forgiven your defaulted mortgage debt?

If so, don’t let the tax man charge you for it. Typically, forgiven debt from a foreclosure, short sale, or other charges counts as income. But ever since the recession, the Internal Revenue Service has granted 100,000 exemptions a year to homeowners. The tax concession is called the Cancellation of Debt Income. Many homeowners who closed a short sale or settled a defaulted loan in 2013 qualify, Forbes reported. [Forbes] -- Angela Hunt

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