If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. This type of debt includes mortgages, credit cards, car loans and student loans. Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form. If you disagree with the amount reported contact your lender to work out any discrepancies and have them issue a corrected Form 1099-C. more…

Homeowners still have time this year to make energy-saving and green-energy home improvements and qualify for either of two home energy credits.

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Mortgage Interest—Many taxpayers can deduct their mortgage interest on their residence.  However, there is a limitation on this.  The interest on a primary residence can only be deducted on up to $1,000,000 mortgage and $100,000 line of credit.  Points paid to secure a mortgage when purchasing a new home are fully deductible.  Points paid on a refinance must be amortized over the life of the loan. more…

What direction do you think interest rates are headed in?
Homeowners have ridden the variable interest rate mortgage ride for all it's worth. The prime rate hit 20% in 1980.  Since then interest rates have been in a long and steady decline.  Along the way, borrowers would refinance their house and take out more cash as the value of the property was rising.  Times have changed just a wee bit.  more…

This could be a very difficult situation for many of us and quite a role reversal. However, as our parents age we may have to consider the option of having them live in our home. If you are taking care of an elderly individual in your residence you may be able to claim them as your dependent providing you meet certain conditions. more…