Tax Season and Home EXPENSES

Owning a Home
Written By Lila McCann

Tax Season is here! Here’s what you should know about Deductible and Non-Deductible home expenses. 

The IRS has a pretty extensive and detailed list about deductible and non-deductible home expenses. To read the article in it’s entirety, check out the full info on the IRS website. As always, if you have any questions, or need further guidance, it is always best to consult a tax professional to be sure you are moving in the proper direction.

But to get started … here’s a good guideline on what may be deductible versus not.

Deductible Items:

  • Mortgage Interest

  • Home Equity loan interest

  • Discount points purchased to lower interest rates when purchasing or refinancing. 

  • Property Taxes

  • Necessary Home Improvements

  • Home Office Expenses

  • Mortgage insurance

  • Capitol Gains taxes: (The key is that you lived in the house for 2 of the last 5 years, before selling a making a profit. With a big tax break on the table, it’s important to take this deduction seriously.)

Non-deductible Home Expenses:

  • Fire insurance

  • Homeowner’s insurance premiums

  • The principal amount of mortgage payment

  • Domestic service

  • Depreciation

  • The cost of utilities, including gas, electricity, or water

  • Down payment

Lila McCann
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