Tax breaks are some of the biggest perks of owning a home, but which home-buying expense is NOT tax deductible?

Asked by Trulia Chicago, Chicago, IL Tue Jan 29, 2013

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David Hanna, Agent, Chicago, IL
Tue Jan 29, 2013
BEST ANSWER
Too broad a question to thoroughly answer. Homeowners may expense items an investor cannot, and vice versa, especially when the expenses we are talking about are related to ownership after the closing.
A good real estate attorney can save you money at the closing table by ensuring costs and expenses are allocated to buyer and seller, as well as credits.
0 votes
Matt Laricy, Agent, Chicago, IL
Tue Jan 29, 2013
Home maintenance is not. That typically leaves you with a big expense. Also if there is assessments, those aren't deductible either.
1 vote
Joanna Weiss, , Chicago, IL
Thu Jan 31, 2013
it depends on what price range you are in. Currently Mortgage interest, real estate taxes and mortgage insurance if you make less than a certain amount. Hazard insurance or home owners association dues are not tax deductible. Let me know if I might be of help to you. Joanna 773-327-3580
0 votes
Manuel Brown, Agent, Chicago, IL
Wed Jan 30, 2013
This pertains to owner occupied properties. I advise owners of investment properties as well as individual homeowners to speak with a tax expert to make sure they are in compliance with IRS rules.

Some Home Related Expenses that Can Never Be Deducted:

• Fire, flood, or homeowner insurance payments
• Amounts paid to reduce your mortgage principal
• General home improvement and maintenance expenses
• Home Owners Association Monthly Fees

Itemized Deductions Related to the Common Costs of Purchasing a Home:

• Home Mortgage Interest payments
• Real estate taxes
• Mortgage points (each point is equal to one percentage of the loan amount)
• Mortgage Insurance Premium payments

The above information provided obtained from E-File.com.
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