Homeowners should review any tax benefits for homeownership

The year is nearly half over which makes it a good time to remind homeowners and future homeowners to review their eligibility for any tax deductions, programs and housing allowances. If eligible, these tax benefits could help with some of the common costs of being a homeowner.

Deductible house-related expenses
Taxpayers must itemize their deductions to deduct homeownership expenses. Most home buyers take out a mortgage to buy their home, and their mortgage lender may bundle other home-related costs.
The costs the homeowner can deduct are:

State and local real estate taxes, subject to a $40,000 limit or $20,000 if married filing separately

Home mortgage interest, within the allowed limits

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