Tax Benefits for Homeowners

Written By Kevin McKernan

  • Deductible house-related expenses.

  • State and local real estate taxes are subject to the $10,000 limit. 

  • Home mortgage interest within the allowed limits. 

Taxpayers must itemize their deductions to deduct homeownership expenses. 

Homeowners cannot deduct any of the following items: 

  • Insurance including fire and comprehensive coverage and title insurance

  • The amount applied to reduce the principal of the mortgage

  • Wages paid to 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

Mortgage Interest Credit

This assists lower-income taxpayers so they can afford houses. 

Ministers and military housing allowance

Real Estate Taxes and Mortgage Interest can still be deductible even if the taxpayers receive an allowance. 

This document is designed for general information only. The information presented in 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  | 📞 718-317-5007

Kevin McKernan
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