what are some of the home ownership tax deductions available out there?

Question

What if I'm doing an intrest only loan? And, can home repairs/improvements be written off as well? Also, are there any write off's for working at home, but employed through a corporation? Thanks!

Answer 1

Interest, including all interest on an interest only loan, and real estate taxes can be deducted if you itemize.

Repairs can't be deducted. Improvements can't be deducted, but if you owe taxes when you sell, they can be added to the basis - so save your receipts.

If you are an employee, a home office deduction is only available to you if it is for the convenience of your employer, not just appropriate and helpful in your job. And the area must be used regularly and exclusively for business. A corner of the family room with a computer that is used for personal as well as business use would NOT qualify. Be very careful if you take a home office deduction that it is legal for you to do so - it's something the IRS tends to look at closely.

Answer 2

It depends on if the home is for personal use ( like if you live in it) or if its used for rental income...For personal use of the home, you can write off mortgage interest, property taxes, and real estate taxes, to name a few..and nine times out of ten, you will itemize your deductions instead of taking the standard..Any more questions, just ask :)

Answer 3

For your personal residence, there are two: Mortgage interest (including points in the year of purchase) and ad valorem property taxes. Claim both on Schedule A.

Answer 4

Interest on your home loan and it's good if you are just buying the property now because at the start of a mortgage you are paying the biggest amount of interest. It drops over the years and you pay more towards the principle (the base amount that you orignally borrowed.)