Tax Deductions Every Homeowner Should Know About

Mortgage Interest Deduction

Deduct interest on up to $750,000 of mortgage debt ($375,000 if married filing separately). This applies to your primary residence and one second home. Points paid at closing are also deductible.

Property Tax Deduction

State and local property taxes are deductible, subject to the $10,000 SALT cap. This cap combines property taxes with state income or sales taxes.

Home Equity Loan Interest

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

Energy Credits

The Residential Clean Energy Credit covers 30% of costs for solar panels, solar water heating, wind turbines, geothermal heat pumps, and battery storage. No annual maximum.

The Energy Efficient Home Improvement Credit provides up to $3,200 per year for qualified improvements including insulation, windows, doors, heat pumps, and energy audits.

Home Sale Exclusion

When you sell your primary residence, exclude up to $250,000 (single) or $500,000 (married) in capital gains if you owned and lived there for at least 2 of the past 5 years.

Home Office Deduction

Self-employed homeowners can deduct a portion of housing costs based on the percentage of the home used exclusively for business.

Casualty Loss Deduction

If your home is damaged in a federally declared disaster, you may deduct uninsured losses.

Taxation.ai helps homeowners identify and maximize every available housing-related tax benefit automatically.