Maximize Your Deductions: Common Tax Write-Offs for Homeowners

What does the Federal Government allow a homeowner to deduct

Mortgage interest and property tax payments

The federal government allows homeowners to deduct several expenses from their taxable income when they file their taxes. Here are some of the common deductions:

1. Mortgage Interest: Homeowners can deduct the interest they pay on their mortgage as long as the mortgage is on their primary residence and the loan balance is less than $750,000. This can include interest on a first or second mortgage, as well as home-equity loans and lines of credit.

2. Property Taxes: Homeowners can also deduct the property taxes they pay on their home and any other real estate they own. The deduction is limited to $10,000 per year.

3. Points: If a homeowner bought a home in the past year and paid points to their lender, they may be able to deduct the points as long as they meet certain qualifications. The points must be associated with the purchase of a primary residence and must not be excessive.

4. Home Office: If you have a home office that is used exclusively for work, you may be able to deduct expenses associated with that space, such as the cost of utilities or expenses related to its maintenance and repairs.

5. Moving Expenses: If you moved in the past year for a job, you may be able to deduct certain expenses related to the move, as long as they meet certain qualifications.

It is important to note that the tax code can change from year to year, so it is important to consult with a tax professional if you have questions or concerns about your deductions.

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