IRS.gov Banner
IRS Tax TipsMay 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:

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:

Back to top


FaceBook Logo  YouTube Logo  Instagram Logo  Twitter Logo  LinkedIn Logo


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.


This email was sent to irsblogposts@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535GovDelivery logo