Whether you’re doing your own income tax return or having them done professionally, you need to gather information to determine if any portion of your home ownership is deductible. Here are a few questions to help identify if you may be eligible for home ownership deductions:
Did you refinance your home this year? If YES, points may be taken as an interest charge.
Do you itemize deductions or use standard deduction? Your best bet is to compare the mortgage interest, property taxes, and other eligible deductions to see which will provide you with the largest deduction.
Are you paying mortgage insurance premiums with your payment? If YES, you may be able to use this as a deduction.
Did you purchase a home in 2014? If YES, look at your HUD-1 statement from closing for any possible deductions. An example: If the seller paid points on your behalf, you may be able to deduct them. If you need another copy of your HUD-1, contact your real estate professional.
Did you purchase or install any qualified residential energy efficiency property or improvements in 2014? If YES, you may be eligible for tax credits.
Do you have a designated exclusive area in your home for a home office? If YES, you may be able to deduct a pro-rata share of home expenses such as insurance, utilities, phone, and other expenses.
For more information, visit:
2014 IRS Home Deductions – www.irs.gov/pub/irs-pdf/p936.pdf
2014 Home Mortgage Interest Deductions – www.irs.gov/pub/irs-pdf/i1040sca.pdf