There are a number of taxes, fees and payments made on or for a house that are tax deductible, as well as a few costs that qualify a taxpayer for a tax credit. The most notable are mortgage payments, home offices, medical improvements, property taxes, first-time home purchase and energy efficiency improvements.
Mortgage Payments
The interest on mortgage payments is generally tax deductible, but only up to $500,000 in loans for an individual or $1 million for couples filing jointly.
Home Offices
If an individual or couple has a home office that is used for business purposes, costs associated with that office may be tax deductible, including a portion of the house's depreciation and insurance costs.
Medical Improvements
Medical home improvements are generally deductible, but only up to the cost of what is medically necessary. Some examples of this include handicapped-accessible doorways and sinks.
Property Tax
Property taxes paid on a home are deductible.
First-Time Home Purchase Credit
First-time home purchasers are generally entitled to a $7,500 credit that must be repaid to the government over a number of years. In 2009, this provision was amended for one year to increase to $8,000 and not be repaid to the government.
Energy Efficiency Credit
Some home improvements for energy efficiency may qualify a taxpayer for an income tax credit.
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