Homeowners, new hires eligible for tax breaks

03.15.09
By Lewis Green

For consumers struggling to manage credit card debt and make ends meet on a tighter budget, there may be some tax relief just around the corner.

According to the American Institute of Certified Public Accountants (AICPA), special terms in the tax law can help Americans save money - you just have to know what to look for.

"In these tough economic times, taxpayers need every advantage they can get," said Tom Ochsenschlager, vice president of taxation for the AICPA.

The accountancy organization says that taxpayers who have faced foreclosure or restructured their mortgages do not have to pay taxes on the amount of debt the lender discharged according to the Mortgage Forgiveness Debt Relief Act of 2007.

Be careful, advises the AICPA, the exception only applies to principal residences not second homes or vacation properties.

Have you been affected by the uncertain job market? For those American who did find a new job last year and moved as a result of that new position, you may be eligible for a tax break.

"If you lost your job and moved to take a new one, remember that moving expenses you paid are deductible, but only if the new job is at least 50 miles from the previous job site and you stay for a certain period of time," said Ochsenschlager.

Keeping detailed records of moving expenses will help when it comes time to fill out tax paperwork.

Meanwhile, first-time homeowners may have more tax breaks in the future. According to the Sun Sentinel, the state legislature is considering giving first-time Florida home buyers a tax break for purchasing property - a move geared to helping the state's ailing residential home market.

More Personal Finance Articles | News Home | Discuss in our Forum

First-time homeowners may have more tax breaks in the future.