A. Here are three tax breaks that some families might take advantage in 2016 since all of them are scheduled to expire in 2017 unless Congress renews these provisions.
Energy Saving Credit
You can claim up to $500 in total tax credit credits for eligible new energy-efficient windows or similar energy-saving home improvements. The credit applies to 10% of the purchase cost (excluding installation cost) of certain insulation, windows, doors and skylights.
Private Mortgage Insurance
You can deduct premiums paid for private mortgage insurance in 2016 as long as your mortgage started in or after 2007 and this mortgage is for your primary residence. Please note that if your gross income exceeds $109,000, you are ineligible for this deduction.
Underwater Property
If you have negotiated with your lender to sell your home for less than your owe on the mortgage, as long as your contract is signed before December 31, your forgiven debt is not taxable. The exclusion will apply to mortgage debt forgiven in 2017 if the agreement to discharge the debt is signed in 2016.