Home Buying Tax Deductions Checklist

Home Buying Tax Deductions Checklist

Mortgage Interest

• After purchasing a home, interest payments on mortgages can be deducted

Property Taxes

• All property taxes are deductible
  • Second home real estate taxes are also deductible

Home Sale Exemption

• Last year home capital gains are not taxed if income is below threshold
  • $250,000 cap for a single person and $500,000 cap for a married couple

Private Mortgage Insurance (PMI)

• If unable to make 30% down payment, lenders may require PMI
  • PMI is tax deductible if income is less than $100,00

Mortgage points

• Points help drive down interest rates or help with origination fees
• A point equals 1% of your loan amount or $1000 for every hundred thousand borrowed

Energy-Efficient Upgrades

• Qualifying solar panels and water heaters receive a credit of 30%
• Ceiling fans and other upgrades receive a $50 credit

Home Improvement Loan Interest

• You can take out a home equity loans in order to get quick cash for home upgrades

Home Office Deduction

• $5 can be taken for every square foot of office
  • Up to a maximum of 300 square feet