Our home is something that we all cherish more than almost everything else in our lives. This is a place to live in. and besides giving us shelter from all physical calamities it also gives much more. Unfortunately when you have a home you also have a whole other arena of tax issues to deal with. Taxes are scary and you may have felt as if the whole roof has fallen down upon your head. If this sounds familiar then you need to take a deep breathe, there are all kinds of great tax deductions that you can take to the bank! In fact your home can be a pretty spectacular tax shelter all on its own.

For example, you can deduct some of the interest on your Home Equity Loan or your Line of Credit. Unfortunately, the IRS has placed a limit on the amount that you are able to deduct.

And that is not all; a Home Improvement Loan is the best way to deduct your interest from your taxes. Although, there is no dollar limit on this deduction, the loan must be taken on ‘capital improvement’ rather than ordinary repairing services. These ‘capital improvements’ can include things like new fencing, a new drive-way, new additions, swimming pools, a garage or even a new roof and these are just a few of the many things that you can get.

Everyone’s home can use a little improvement and it is easy to find out just what kinds of tax deductions you can use for this kind of purpose. There are even some books that you can get to help you find out what you are eligible for as well as many different computer programs. The key to successful tax deductions is to have the knowledge on your side.

Kory Elgar writes about business and finance for http://taxdeduction101.info Read more about home and business tax deductions/.

Legally do I HAVE to use every tax deduction or is it optional?

I am self employed and because of low income I will be getting the earned income credit.
My situation is such that if I DON’T use every possible deduction (such as office supplies for home office, cell phone use, etc.) I actually will get MORE back. Usually people want every possible deduction but I would be better off using less misc. business deductions (stuff the IRS tries to throw out anyway when its to their advantage).
Is it legally my option to use what business deductions I choose?

You can’t legally tweak your income to maximize EIC

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