As a whole, the tax deductions for homeowners remain largely unchanged for the 2013 tax year. However, if Congress doesn’t act, many of these will expire for the 2014 tax year.
Disclaimer: This is only general information about tax law. If you have questions or unusual circumstances, you need to seek out the advice of a tax professional.
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- Mortgage interest deduction remains the number one tax deduction for homeowners. This applies to primary home values up to $1 million. Congress has been looking at limiting this deduction for high-income earners but has not yet taken action. Those with incomes above $400,000 may see a limit placed on them in the future.
- Home improvement loans have a limited deduction. If you take out a loan secured by the equity of your home, you can deduct the interest paid in many cases. These include adding an addition and updating most components of the house. However, routine maintenance such as replacing carpets or painting are not entitled to an interest deduction.
- Mortgage point deduction. These are also known as origination fess and are generated when you first buy the home or when you refinance. It’s a fee …read more