The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct:
: If you paid "discount points" to lower your interest rate, they are often fully deductible in the year you paid them, provided the loan is for your primary residence and meeting other IRS criteria. Nondeductible Closing Costs deductible home buying expenses
Interest on home equity loans is only deductible if the funds were used to buy, build, or substantially improve the home securing the loan. The Internal Revenue Service (IRS) identifies three major
Topic no. 504, Home mortgage points | Internal Revenue Service 504, Home mortgage points | Internal Revenue Service
This cap is reduced to $20,000 for those who are married and filing separately.
This limit applies to loans taken out after December 15, 2017.
Check your settlement statement for any pro-rated property taxes you reimbursed to the seller at closing; these are often deductible even if they aren't on your Form 1098.