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Real Estate Tax Deductions
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Mortgage Interest Deduction
Allows you to deduct interest paid on your mortgage up to 1,000,000 for loans before.
Property Tax Deduction
Enables you to deduct the property taxes you pay on real estate you own, capped at 5,000 if married filing separately).
Home Office Deduction
Deduct expenses for a home office if used regularly and exclusively for business, calculated by the square footage method or the actual expense method.
Rental Property Depreciation
Allows deduction for the decrease in value of rental property over time, typically over 27.5 years for residential property.
Energy Efficient Improvements Credit
Offers a tax credit for making qualifying energy-efficient home improvements, including certain roofing, windows, doors, and insulation.
Residential Energy Credits
You can claim credits for residential alternative energy equipment, such as solar panels, solar water heaters, and wind turbines.
Capital Gains Exclusion on Sale of Home
Exclude up to 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.
Points Deduction
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.
Moving Expenses for Military
Deductible moving expenses for active military members moving due to military orders, including packing, transportation, and storage costs.
Home Sale Expenses Deduction
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.
Real Estate Professional Deduction
If qualified as a real estate professional, you can fully deduct rental real estate losses against your income without passive activity loss limitations.
Real Estate Investment Trust (REIT) Dividends Deduction
Allows a deduction of up to 20% on dividends from Real Estate Investment Trusts, excluding capital gains and qualified dividends.
Vacation Home Deduction
Limits on deducting expenses related to a vacation home that's rented out, based on the number of days of personal use vs. rental.
Foreign Real Estate Taxes Deduction
Foreign property taxes paid on real estate located outside the U.S. are not deductible unless used for rental or business purposes.
Medically Necessary Home Improvement Deduction
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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