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Homeowner Expenses You Can (And Can't) Deduct At Tax Time
You know that your home is an asset that affects your net
worth in a positive way – but did you also know there are
tax benefits to owning a home?
One of the most significant ways
to reduce your annual income tax
by offsetting income is through
deducting homeowner expenses.
Here's what you can deduct:*
- Home loan interest on your
primary residence
- Home loan interest on your
second home
- Interest on home improvement
loans or home equity loans
- Points and origination fees
paid at closing
- Points paid for a refinance
- Real estate taxes
- Community assessments for
maintenance or repair
Here's what you can't deduct:
- Homeowners insurance (this
is non-deductible even if it's
escrowed as part of your
monthly payment)
- Mortgage insurance
- State and/or community charges
(water, garbage collection, etc.)
- State and community assessments
that improve your property
(e.g., sidewalks)
- Homeowners association fees
- Lender fees at closing (appraisal
fees, document preparation
fees, etc.)
Be sure to hold onto all of the
following to take full advantage
of these tax breaks:
- All paperwork regarding the
purchase of your home(s)
- Records of home improvement
- Records of home business
expenses, if applicable
- Tax returns from the years
during which you bought
and/or sold a home
- Your interest and tax statements
Will homeownership
affect your taxes?
Visit us online at
www.greatbasin.org to learn more.
As always, check with your tax
preparer or a CPA before making
any decisions. If you're not yet
a homeowner, call the credit union
for a prequalification so that you can
soon become one. You can reach
your Great Basin FCU mortgage
officer, Cindy, at (775) 789-3117 or
email her at cindyk@greatbasin.org.
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