Real Estate Tax Deductions – 2015

Biggest Homeowner Tax Deductions

Here are four of the the biggest homeowner tax deductions in 2015.  Expect to receive a 1098 report from your lender with details.  Other deductions are available.  Check with your accountant!
1.  Mortgage Interest Paid – Annual mortgage interest is tax deductible for first mortgages, second mortgages and home equity lines of credit.  The deduction is for a primary residence and up to one second (vacation) home.
2.  Discount Points – If you purchased or refinanced in 2015, you may have paid discount points to obtain a lower rate.  One full discount point is equal  to 1 % of the loan amount.  The IRS classifies discount points as prepaid mortgage interest.  Restrictions apply.
3.  Property Taxes – Annual property taxes paid each year are also tax deductible for homeowners.  If you purchased a property in 2015, you will want to keep track of your settlement statement which shows property taxes you paid at closing.
4.  Mortgage Insurance – Mortgage insurance is required on loans purchased or refinanced with less than 20% equity.  Some restrictions apply if your adjusted gross income is over $100,000.
This should not be considered tax advise.  For tax-related questions, please speak with a licensed accountant or see IRS Publication 936.