3 Key Tax Deductions Renewed for Homeowners

According to realtor.com, if you did any of these three things in 2014, you still have reason to celebrate (OK, maybe not really celebrate, but celebrate as much as anyone can while doing taxes).

Short sale

In the third quarter of 2014, millions of homes in the United States were seriously underwater, according to the real estate research firm RealtyTrac. If you were a homeowner who decided to short-sell your home last year, it’s not all bad news: Congress once again extended the Mortgage Forgiveness Debt Relief Act.homeownersale

For people who couldn’t provide a 20% down payment, private mortgage insurance (PMI) is a familiar expense. But if you bought your house in 2007 or afterward, you were given a break if you earned less than a certain amount of money each year. Luckily, that provision is still around. The bill was set to expire in 2014, but two weeks before the end of the year, Congress extended the provision into 2015.

If you waited until 2014 to make energy-efficient upgrades, you may be in luck. You can claim up to $500, cumulatively, in tax credits for energy-efficient upgrades involving the following:

  • Exterior windows
  • Heating and cooling systems
  • Insulation
  • Exterior doors
  • Biomass stoves

This tax break is cumulative for previous years. If you claimed $400 worth of equipment in 2013, you still have only $100 to work with.