Home Ownership Tax Deductions
...the amount of money you save on your annual income tax bill depends on a variety of factors...
TurboTax and Military.com
You know you can get a deduction for your mortgage interest, but what else can you deduct for your primary or secondary home?
At tax time, your house is not simply a home: it’s a giant tax deduction. You get to deduct:
- -Your property taxes.
- -The mortgage interest on your primary residence, as well as any secondary residence you own. (There are limits, but relatively few taxpayers are affected.)
- -The interest on up to $100,000 borrowed on a home-equity loan or home-equity line of credit, regardless of the reason for the loan.
- -Points you paid when purchasing the house (or convinced the seller to pay for you).
- -For homes purchased in 2007, the premiums paid for private mortgage insurance in 2007. (The right to this deduction disappears as adjusted gross income rises from $100,000 to $110,000 on a joint return and from $50,000 to $55,000 on a single return.)
- -Home improvements required for medical care.
How Much Can I Save?
The actual amount of money you save on your annual income tax bill depends on a variety of factors, such as:
- -Your filing status (single, head of household, married filing jointly, married filing separately)
- -Your standard deduction
- -Your other itemized deductions
- -Your taxable income
Your home-related deductions plus your other itemized deductions must add up to more than the standard deduction, or they won’t save you any money.
What Can’t I Deduct?
You can’t deduct the following payments for your primary residence:
- -Dues to a homeowners’ association
- -Insurance on your home
- -Appraisal fees for your home
- -The cost of improvements to your home. But keep those receipts: They may help you reduce your taxes when you sell your home.