Hello neighbors,

Although the economy and housing market had a few hurdles, remember there is still good news for U.S. home owners. With the creation of a variety of tax laws by U.S. lawmakers, home owners are finally filling some relief. Check out 4 tax laws that all homeowners should know.

Cancellation of debt income - 2007's Mortgage Forgiveness Debt Relief Act was one of the first housing related tax relief measures that was implemented. This act enables taxpayers to omit debt forgiven on a principal residence if foreclosure occurs or if the mortgage is reconstructed. Prior to this act, homeowners were required to pay taxes on the amount of forgiven mortgage debt. In the case of foreclosures, debt was canceled.

First Home Buyer Credit - This popular credit was created in 2008 and has encountered many modifications since. This tax credit law allows first time qualified home buyers to receive up to $8000 and $6500 for non first time buyers.

PMI Deduction - Normally, if a buyer gives a down payment of less than 20 percent, the lender will require private mortgage insurance (PMI) which will protect them if the buyer defaults. In addition, premiums must be paid which usually becomes apart of the monthly mortgage payment. However, the premium payments have been deductable as an itemized expense on certain home loans issued since 2007.

Note: If your adjusted gross income is $100,000 or more, or $50,000 or more if married and filing separately, your deducted PMI amount is limited. If you adjusted gross income is more than $109,000 or $54,500 if married and filing separately you will not get a deduction.

Property Tax Addition to Standard Deduction - This is another well known tax break on homes which has been expanded. Before, real estate taxes were popular tax deductions for those who homeowners who itemized. These payments could be used to increase tax payer's deduction totals.

Now, those homeowners who do not itemize can claim a portion of their real estate tax payments as part of the standard deduction. An additional $500 for single homeowners and an additional $1000 for joint filers can be added to the standard deduction amount of the taxpayer's.