Top 5 Homeowner Tax Deductions
- Mortgage Interest – In the DC Metro area, this is generally a large deduction due to the high cost of housing.
- Real Estate Taxes – Along with the mortgage interest, these are the two biggest home deductions.
- Mortgage Insurance – The fate of this deduction is still in the hands of Congress but generally has been renewed. This deduction allows you to write off the mortgage insurance premiums you pay in conjunction with certain loan products.
- Energy Efficient Home Improvements – Bought a new furnace, new windows or doors? Then you are probably eligible for an Energy Property Credit of 10% of the cost of the home improvements.
- Prepaid Interest – If you paid interest on your loan in conjunction with your settlement charges, this interest is deductible.