Tax Deductions For Your Home

There are two primary types of tax deductions -- standard and itemized.

The standard deduction will fluctuate depending on your filing status (single, married, married filing separately, head of household, etc.).

There are typically nine itemized deductions that you can claim.

1. Mortgage Interest. This comes with limits depending on your filing status.

2. Home Equity Loan Interest. You can generally deduct some of the interest paid on a H.E.L. if you used the loan proceeds to buy, build, or substantially improve your home.

3. Discount Points. This is a fee that you can elect to pay when obtaining a mortgage to buy down the rate.

4. Property Taxes. Subject to certain limitations, you can generally deduct property taxes on homes that you own.

5. Home Improvements For Medical Reasons. As prescribed by a medical professional, subject to limitations.

6. Energy Credits. Solar for instance.

7. Home Office Expenses. Allows self-employed individuals and certain employees to deduct expenses for the business use of their home.

8. Mortgage Insurance. Typically a cost when buying with less than 20% down.

9. Capital Gains. The tax rates on CG's depend on your income level and the type of asset sold.

The above should be independently verified by your tax professional.


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