Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

How to Manage Homeowner Tax Expenses

September 19th

tax deductionThe majority of homeowners are aware that owning a home comes with numerous valuable tax deductions. Notable among these are home mortgage interest and property tax deductions, both of which can contribute significantly to saving money.

Also among deductible expenses are the following:

  • House Payment. If you took out a loan to finance the purchase of a home, monthly payments usually have to be made. These typically include several costs pertaining to owning a home. However, the only ones of these that are tax deductible are real estate taxes, interest that qualifies as home mortgage interest, and mortgage insurance premiums.
  • Military or Clergy Housing Allowance. Ministers and members of the military often receive non-taxable housing allowances. The real estate taxes and home mortgage interest pertaining to these allowances may, however, still be deducted.

However, it is important to remember that not all housing expenses are deductible. Avoid penalties or other issues by ensuring that your tax return reflects only deductible expenses. Among non-deductible expenses are:

  • Insurance. No insurance payments may be deducted except for mortgage insurance premiums. This includes fire, title, and homeowners insurance.
  • Wages. Any wages paid for domestic help, including personal chefs, cleaners, or landscapers, are not tax deductible.
  • Utilities. No utility costs, such as gas, electricity, or water, can be deducted.

To deduct any of the expenses involved in purchasing or running a home, taxpayers must file a Form 1040 and itemize all deductions. Clear documentation of expenses must also be provided in the form of receipts, photos, and other records. If you have any concerns or questions regarding which particular homeowner expenses may be deducted, contact a qualified tax attorney. A tax attorney will be able to advise on not only which expenses are deductible, but also how to approach filing for such deductions on your tax return.


Subscribe Now

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011