IRS debunks common tax myths

Part 1: Tax advice for homeowners

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(This is Part 1 of a five-part series. Read Part 2, "Homeowners get good tax news for 2007"; Part 3, "How to deduct mortgage interest, points on taxes"; Part 4, "Home sellers keep profits, avoid taxes"; and Part 5, "Understanding Starker exchange rules.") "The income tax created more criminals than any other single act of government." --Sen. Barry Goldwater (R-Ariz.) Every year at this time, I write a series of tax-related columns. My purpose is to provide some guidance for homeowners preparing to file their income tax return. Normally, millions of Americans try to file their returns well in advance of the April 15 deadline. They either want an early refund if they have overpaid their tax or just want to get this burden off their back as soon as possible. However, Congress in late December threw a monkey wrench at the Internal Revenue Service, by enacting a "patch" affecting the Alternative Minimum Tax, or AMT. Accor...