Tax Season! The Schedule A Form & 6 Home Deduction Traps

HouseLogic.com recently posted an interesting article on the Schedule A Form and 6 Home Deduction Traps that we wanted to share. Be sure to consult with your accountant or a tax professional to see if any of these apply to you!

Schedule A is the part of Form 1040 you use to list myriad deductions, and the more moving parts, the more prone you are to misinterpretation. To save you heartache, we asked four tax experts to weigh in on the six most common Schedule A mistakes do-it-yourselfers make.

Trap #1: Line 6 - real estate taxes

Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.

The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block's Home Seller's Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.

Example:

• Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes

• Your annual property tax bill: $5,500

Now do the math:

• Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you're making a mistake if you enter $6,000 on Schedule A.

• Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.

Trap #2: Line 6 - tax calculations for recent buyers and sellers

If you bought or sold a home in the middle of 2010, figuring out what to put on line 6 of your Schedule A Form is tricky.

Don't simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.

Here's why: Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won't be reflected on your property tax bill.

Trap #3: Line 10 - properly deducting points

You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you're entitled to deduct only $100 per year on your Schedule A Form.

Trap #4: Line 10 - HELOC limits

If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP.

For example, if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on $200,000. But you can deduct only the interest paid on $100,000. If you just pull the number off Form 1098, you'll deduct more than you're entitled to.

Trap #5: line 13 - Private mortgage insurance

Form, as long as you started paying the insurance after Dec. 31, 2006. (Also, this is also a good time to review your PMI: You might be able to cancel your PMI altogether because you've had a change in loan-to-value status.)

Trap #6: line 20 - casualty and theft losses

You can deduct part or all of losses caused by theft, vandalism, fire, or similar causes, as well as corrosive drywall, but the process isn't always obvious or simple:

• Only deduct losses that are greater than 10% of your adjusted gross income (line 38 of Form 1040).

• Fill out Form 4684, which involves complex calculations for the cost basis and fair market value. This form gives you the number you need for line 20.

Bottom line on line 20: If you've got extensive losses, it's best to consult a tax pro. "I wouldn't do it myself, and I've been dealing with taxes for 40 years," says former IRS official Marti.

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Quick & Easy Dip for Holiday Entertaining at Lake of the Ozarks!

Two (and a half) more shopping days until Christmas!

If you have a crowd coming to your home at Lake of the Ozarks for the holidays, you'll love this easy and delicious hot artichoke and red pepper dip ... another Fran Campbell Team favorite!





Ingredients
1/3 cup sliced green onion
2 T butter
1 14 oz can artichoke hearts (drained & chopped)
1 cup Parmesan cheese
1 cup mayo
1 7oz jar roasted red sweet peppers (drained & chopped)
Salt & Pepper to taste
2T grated Parmesan cheese

Directions:
1. In a medium skillet, melt butter and cook onions until tender but not brown. About 5 minutes.
2. Remove from heat
3. Add artichoke hearts, 1 cup Parmesan cheese, mayo, red peppers, and salt & pepper.
4. Transfer to an 8" or 9" pie plate and spread evenly. (This can be refrigerated at this point for 24 hours prior to baking)
5. Sprinkle with remaining 2T Parmesan and bake uncovered for 20 minutes at 350 degrees.

Serve with tortilla chips, pita chips, fresh bread, crackers, fresh vegetables!

Your friends and family will ask for this recipe, so be prepared!

Happy entertaining at beautiful Lake of the Ozarks!

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Fran Campbell Team
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Fran@FranCampbell.com

1-573-302-2390 Office
1-573-302-2388 Fax
1-573-280-1110 Cell
Best Realtor Lake of the Ozarks

157 Acres- Priced to Sell!

Beautiful, wooded acreage priced to sell quickly. Perfect for hunters or nature lovers. Own a true Ozarks retreat with deer and wild Turkey. This is a extremely great deal for a substantial amount of land. Call the Fran Campbell Team today!



$160,000
157.8 Acres
MLS#3081906

The Fran Campbell Team
LAKE OF THE OZARKS BEST REALTOR S
www.FranCampbell.com
573-302-2390
1-866-306-FRAN

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Darling Resort Condominium

Perfect Top Floor, End Unit condo offers lots of privacy and it’s only one flight up from parking. This darling unit comes turnkey and has vaulted ceiling and wood burning fireplace. Kitchen features plenty of cabinets and counter space. Start enjoying the resort life with the available year round amenities available at the complex. There is a clubhouse w/game room, indoor/outdoor pool, sauna, steam room, hot tub, exercise room, indoor/outdoor tennis courts, BB court. This unit has great rental history and has a 10x24 slip and hoist available for additional $s to make the perfect package.

$89,900
1 bedroom/1 bath
744 square feet
MLS#3082030

The Fran Campbell Team
LAKE OF THE OZARKS BEST REALTORS
www.FranCampbell.com
573-302-2390

Fran@FranCampbell.com

Cove Location and Beautiful Views!

Are you looking for a cove location with beautiful views? This is the one! The interior is open, light and lovely! The lakefront home is made for family get togethers, or quiet evenings by the fire (lovely rock fireplace). There is plenty of room for everyone with spacious bedrooms all with private baths. The home has been updated with new heating system, carpet, roof, & kitchen. This home shows like a model home. The large cruiser dock is included! This is a must see!

$359,000
3 bedrooms/ 3.5 bathrooms
2,224 sq. ft.
MLS#3081789

The Fran Campbell Team
LAKE OF THE OZARKS BEST REALTORS
www.FranCampbell.com
573-302-2390

Fran@FranCampbell.com

Plaza III Steak Soup - Great for Rainy Days!

Another favorite from the Fran Campbell team!

This warm delicious soup is perfect for rainy days. In the spirit of the holidays, we're sharing some our teams' favorite recipes, so tell us how you like them!

PLAZA III STEAK SOUP

½-pound ground sirloin or ground round
½ cup chopped onion
½ cup chopped celery
½ cup chopped carrots
1 stick margarine or butter
1-cup flour
1 quart plus 1 cup water
1 teaspoon Accent
½-teaspoon pepper
1-tablespoon beef soup base
1 cup chopped tomatoes
1 ½-teaspoon Kitchen Bouquet
1 cup mixed vegetables (if frozen, thaw)

Brown and drain ground chuck set aside. Parboil onion, celery and carrots. Drain and set aside. Melt margarine in a 2-quart pan and add flour. Mix well. Add water and stir until thickened. Add Accent, pepper, beef soup base and tomatoes. Cook one minute more, stirring constantly. Add Kitchen Bouquet, mixed vegetables, ground chuck and reserved opinion, celery and carrots. Cook on medium heat 30 minutes, stirring occasionally. Makes about 1 ½ quarts.

You can changed the basis receipt as follows:

• You can use Ground chuck
• When parboiling onions, celery and carrots, add a couple diced potatoes. Do not drain the vegetables; combine the vegetables and liquid with the browned meat
• Instead of 1 cup of chopped tomatoes, use 1 can of stewed tomatoes chopped.
• Omit the butter or margarine to reduce fat content.
• Mix flour and ice water to a smooth lump free consistency. Add to the soup mixture until the desired thickness is achieved
• Add kitchen bouquet until you have the right color
  

Serve with warm sourdough bread and enjoy!

Can't you just envision yourself enjoying this great soup overlooking a gorgeous lake view? Now is a great time to buy your Lake of the Ozarks lake front home or condo! Interest rates are low and real estate prices are RIGHT! Give our team a call to learn more about buying your dream home.

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Fran Campbell Team
Lake of the Ozarks BEST Realtor
www.FranCampbell.com
Fran@FranCampbell.com

1-573-302-2390 Office
1-573-302-2388 Fax
1-573-280-1110 Cell
Best Realtor Lake of the Ozarks

Hot soup for cold weather!

Another favorite from the Fran Campbell team!

Now that the weather is getting colder, we wanted to share another great recipe to help you stay warm! Let us know if you enjoy this one, and send us any of your favorites.

Tomato Tortellini Soup

1 pkg. (9 oz.) refrigerated cheese tortellini

2 Cans (10 ¾ oz. each) Reduced-sodium condensed tomato soup, undiluted

2 cups vegetable broth

2 cups 2% milk

2 cups half & half cream

½ cup chopped oil-packed sun-dried tomatoes

1 tsp. onion powder

1 tsp. garlic powder

1 tsp. dried basil

½ tsp. salt

½ cup shredded Parmesan cheese

Additional shredded Parmesan cheese, optional

Cook tortellini according to package directions.

Meanwhile, in a dutch oven, combine the soup, broth, milk, cream, tomatoes and seasonings. Heat through, stirring frequently. Drain tortellini; carefully add to soup. Stir in cheese. Sprinkle each serving with additional cheese if desired.

Makes 10 servings.

Can't you just envision yourself serving this great soup in a new home? Now is a great time to buy your Lake of the Ozarks luxury home! Interest rates are low and real estate prices are RIGHT! Give our team a call to learn more about buying your dream home.

Be sure to "Like"our Facebook page, "Follow"us on Twitter, and "Connect" with the Fran Campbell Team on LinkedIn.


Contact Fran Campbell Team at RE/MAX Lake of the Ozarks for all your real estate needs.

Fran Campbell Team
Lake of the Ozarks BEST Realtor
www.FranCampbell.com
Fran@FranCampbell.com

1-573-302-2390 Office
1-573-302-2388 Fax
1-573-280-1110 Cell
Best Realtor Lake of the Ozarks

Baileys Irish Cream Cheese Cake

'Tis the Season for More of the Fran Campbell Team's Favorite Recipes!

Baileys Irish Cream Cheese Cake

Crust Recipe
10 Whole Graham Crackers (Broken into pieces)
1 ½ cups pecans (about 5 oz. or 24 halves)
¼ cup sugar
6 Tbsps. (3/4 stick, unsalted) butter, melted


Filling Recipe
1 ½ lb. Cream Cheese (Room temperature)
¾ cup sugar
3 large eggs
1/3 cup Baileys Irish Cream
1 tsp. vanilla extract
3 oz. white chocolate (broken into pieces)

Topping Recipe
¼ cup powdered sugar
1 ½ cup grated white chocolate

For Crust: Preheat oven to 325 degrees. Lightly butter 9-inch spring form pan with 2 ¾ inch high sides. Finely grind graham crackers, pecans and sugar in food processor. Add butter and blend, using on/off turns. Press crumbs onto bottom and 2 inches up sides of prepared pan. Refrigerate 20 minutes.

For Filling: Using electric mixer, beat cream cheese and sugar in large bowl until smooth. Whisk eggs, Baileys and vanilla in medium bowl until just blended. Beat egg mixture into cream cheese mixture. Finely chop white chocolate in processor using on/off turns. Add to cream cheese mixture. Transfer filling to crust-lined pan. Bake until edges or filling are puffed and dry looking and center is just set, about 50 minutes. Cook on rack.
For Topping: Mix sour cream and powdered sugar in small bowl. Spread topping onto cooled cake. Refrigerate until well chilled, about 6 hours.

Tell us how you like it!

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Fran Campbell Team
Lake of the Ozarks BEST Realtor
www.FranCampbell.com
573-302-2390
Fran@FranCampbell.com
1-573-302-2390 Office
1-573-302-2388 Fax
1-573-280-1110 Cell
Best Realtor Lake of the Ozarks

Delicious Cranberry Salad

Enjoy more the Fran Campbell Team's favorite holiday recipes!

Cranberry Salad

1 Package fresh cranberries

1 ½ cup sugar

½ cup chopped nuts

2-3 Apples

½ pint whipping cream

½ package miniature marshmallows

Grind cranberries using food processor. After grinding add 1 ½ cup sugar. Let set overnight. The next day add ½ cup chopped nuts, 2-3 apples (with peelings on) chopped fine. About five hours before serving, add ½ pint whipping cream, whipped. Then add ½ package of miniature marshmallows. Mix well and serve.

Tell us how you like it!

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Contact Fran Campbell Team at RE/MAX Lake of the Ozarks for all your real estate needs.
Fran Campbell Team
Lake of the Ozarks BEST Realtor
www.FranCampbell.com
573-302-2390
Fran@FranCampbell.com
1-573-302-2390 Office
1-573-302-2388 Fax
1-573-280-1110 Cell
Best Realtor Lake of the Ozarks