Tax Tip 2024-51: Tax benefits for homeowners

IRS Tax Tips May 21, 2024
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number: Tax Tip 2024-51 Tax benefits for homeowners Whether someone is a current homeowner or buying a new home this summer owning a home can be expensive. There are tax benefits that can help taxpayers save money and offset some of the costs that come with homeownership. Homeowners should review the tax deductions, programs and housing allowances to see if they are eligible. Deductible house-related expenses Most home buyers take out a mortgage to buy their home and then make monthly payments to the mortgage holder. This payment may bundle other costs of owning a home. The 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. Taxpayers must itemize their deductions to deduct homeownership expenses. Homeowners can't 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 The Mortgage Interest Credit helps people with lower income afford homeownership. Those who qualify can claim the credit each year for part of the home mortgage interest paid. A homeowner may be eligible for the credit if they were issued a qualified Mortgage Credit Certificate from their state or local government. A certificate is issued only for a new mortgage for the purchase of a main home. Ministers and military housing allowance Ministers and members of the uniformed services who receive a nontaxable housing allowance can still deduct their real estate taxes and home mortgage interest. They don't have to reduce their deductions based on the allowance. More information: Publication 530, Tax Information for Homeowners Publication 936, Home Mortgage Interest Deduction Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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