KNOW WHAT'S DEDUCTIBLE AFTER BUYING THAT FIRST HOME, SWEET HOME
When it comes to home ownership, the IRS considers a home to be a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer that contains a sleeping space, toilet, and cooking facilities.
The only costs the homeowner can deduct are:
➡️ State and local real estate taxes subject to the $10,000 limit
➡️ Home mortgage interest within the allowed limits
➡️ Mortgage insurance premiums
Non-deductible payments and expenses:
➡️ Insurance, other than mortgage insurance, including fire and comprehensive coverage and title insurance
➡️ The amount applied to reduce the principal of the mortgage
➡️ Wages you pay for domestic help
➡️ Depreciation
➡️ The cost of utilities, such as gas, electricity, or water
➡️ Most settlement or closing costs
➡️ Forfeited deposits, down payments, or earnest money
➡️ Internet or Wi-Fi system or service
➡️ Homeowners' association fees, condominium association fees, or common charges
➡️ Home repairs
This document is designed for general information only. The information presented on this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below: 📧kevin@kmckernan.com or 📞718-317-5007