Deductible Home Buying Expenses (2027)

This cap is reduced to $20,000 for those who are married and filing separately.

The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct:

Topic no. 504, Home mortgage points | Internal Revenue Service deductible home buying expenses

: If you paid "discount points" to lower your interest rate, they are often fully deductible in the year you paid them, provided the loan is for your primary residence and meeting other IRS criteria. Nondeductible Closing Costs

: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home. This cap is reduced to $20,000 for those

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

: State and local real estate taxes (SALT) are deductible up to a combined total of $40,000 through 2028. Nondeductible Closing Costs : You can deduct interest

This limit applies to loans taken out after December 15, 2017.

This cap is reduced to $20,000 for those who are married and filing separately.

The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct:

Topic no. 504, Home mortgage points | Internal Revenue Service

: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home.

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

: State and local real estate taxes (SALT) are deductible up to a combined total of $40,000 through 2028.

This limit applies to loans taken out after December 15, 2017.