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Real Estate Tax Deductions

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Mortgage Interest Deduction

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Allows you to deduct interest paid on your mortgage up to 750,000forloanstakenoutafterDec15,2017,or750,000 for loans taken out after Dec 15, 2017, or 1,000,000 for loans before.

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Property Tax Deduction

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Enables you to deduct the property taxes you pay on real estate you own, capped at 10,000(10,000 (5,000 if married filing separately).

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Home Office Deduction

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Deduct expenses for a home office if used regularly and exclusively for business, calculated by the square footage method or the actual expense method.

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Rental Property Depreciation

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Allows deduction for the decrease in value of rental property over time, typically over 27.5 years for residential property.

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Energy Efficient Improvements Credit

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Offers a tax credit for making qualifying energy-efficient home improvements, including certain roofing, windows, doors, and insulation.

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Residential Energy Credits

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You can claim credits for residential alternative energy equipment, such as solar panels, solar water heaters, and wind turbines.

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Capital Gains Exclusion on Sale of Home

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Exclude up to 250,000(250,000 (500,000 for married couples) of capital gains from the sale of a primary residence if owned and used for 2 out of the last 5 years.

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Points Deduction

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Deduct prepaid interest (points) paid at closing when purchasing your home or obtaining a home loan; may need to be spread out over the life of the loan.

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Moving Expenses for Military

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Deductible moving expenses for active military members moving due to military orders, including packing, transportation, and storage costs.

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Home Sale Expenses Deduction

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Deduct selling costs associated with the sale of a home, such as real estate commissions, advertising, and legal fees, from the capital gain on the sale.

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Real Estate Professional Deduction

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If qualified as a real estate professional, you can fully deduct rental real estate losses against your income without passive activity loss limitations.

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Real Estate Investment Trust (REIT) Dividends Deduction

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Allows a deduction of up to 20% on dividends from Real Estate Investment Trusts, excluding capital gains and qualified dividends.

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Vacation Home Deduction

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Limits on deducting expenses related to a vacation home that's rented out, based on the number of days of personal use vs. rental.

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Foreign Real Estate Taxes Deduction

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Foreign property taxes paid on real estate located outside the U.S. are not deductible unless used for rental or business purposes.

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Medically Necessary Home Improvement Deduction

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Costs of home modifications for medical reasons can be deducted if they don't add to the home's value and exceed 7.5% of adjusted gross income.

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