The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct:
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.
This limit applies to loans taken out after December 15, 2017.
This cap is reduced to $20,000 for those who are married and filing separately.
: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home.
: 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
The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct:
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.
This limit applies to loans taken out after December 15, 2017.
This cap is reduced to $20,000 for those who are married and filing separately.
: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home.
: 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