Deductible Home Buying Expenses Site

This cap is reduced to $20,000 for those who are married and filing separately.

Understanding Your Deductible Home Buying Expenses Buying a home is one of the largest financial commitments you'll make, but it also opens the door to significant tax advantages. While many of your upfront closing costs are non-deductible in the year you purchase, several key expenses can lower your tax bill if you choose to rather than take the standard deduction. Primary Deductible Expenses deductible home buying expenses

This limit applies to loans taken out after December 15, 2017. This cap is reduced to $20,000 for those

: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home. Primary Deductible Expenses This limit applies to loans

Interest on home equity loans is only deductible if the funds were used to buy, build, or substantially improve the home securing the loan.

: State and local real estate taxes (SALT) are deductible up to a combined total of $40,000 through 2028.