Home Owner Tax Deductions

Home Owner Tax Deductions

With April 15th only a few weeks away, the time has come to look at some of the available tax deductions for homeowners or for those who bought or sold a home in 2015.

In most instances you will need to itemize your taxes in order to qualify for the below tax deductions and credits.

If in doubt, talk with a tax attorney or certified public accountant (CPA) to ensure you can claim the deduction.

Home Ownership Tax Deductions

The following expenses can be eligible for a tax deduction:

  1. Your property taxes.
  2. The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
  3. The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
  4. The premiums paid for Mortgage Insurance Premiums, but only for policies issued after 2006.

Additional Tax Benefits For Home Owners

Home Energy Credits - You may be entitled to a tax credit of up to 30% of the installation cost of geothermal heat pumps and solar/wind energy systems. Unless the laws change, these credits will expire at the end of 2016.

Home Improvements - Improvements required for medical care.

Home Office Deductions - If the space, up to 300 square feet, is regularly and exclusively used for business purposes.

Deductions not allowed for a personal (primary) residence:

  1. Dues to a homeowners association
  2. Insurance on your home
  3. Appraisal fees for your home
  4. The cost of improvements to your home, except in the relatively rare case where they qualify as a medical expense.

Deductions on the Purchase of Your Home

If you purchased your home in 2015, these are some costs that can be deductible:

  1. Interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment.),
  2. Real estate taxes charged to you,
  3. Points - sometimes called origination fees and expressed as a percentage of the amount borrowed.
  4. Private Mortgage Insurance costs but, if prepaid, only the amount allocable to this year based on an 84-month amortization.

Title fees, real estate commissions, appraisal costs, home inspections, documentary stamps, credit report costs, costs of an abstract, transfer taxes, flood certificate, attorney fees, etc. are not deductible, but are added to the cost of the property.

Deductions on the Sale of Your Home

If you sold your home in 2015, these are some costs that can be deductible:

  1. Capital Gains - Real estate capital gains are the profits made in the sale of your home. Basically the sales price minus the purchase price plus any improvements made minus any depreciation, which applies to both individuals (up to $250,000) and couples (up to $500,000) when they sell their home. 

    There are special provisions for both active duty military and those whose spouse died during the tax year.

  2. Moving Costs - If you are moving because of a new job or taking another position with your current employer in another locale (at least 50 miles further away from your home than your previous job was), you may be entitled to moving cost tax deductions.

  3. You are able to deduct mortgage interest, points paid, and real estate property taxes you paid during the closing. 


    Items such as advertising costs, attorney and Realtor fees, escrow and title services, administration fees, and many other closing costs are not permissible deductions (they may be allowable for the new buyer though).

Important: Use Trusted Professionals for Advice

Always consult with a tax professional before finalizing your annual tax filings to make sure your homeowner deductions are done properly. If unsure who to contact, please give me a call and I can provide a listing of resources for you to contact to get further information and help.

Bruce Ballatine

Bruce Ballatine, SRES, CSA is a Realtor Associate with Evergreen Realty. CalBRE #001783833. He can be reached at (949) 632-2923 or bruce.evergreen@cox.net

Latest News

Sorbet Magazine Celebrates Its September Issue!

Business Showcase Sorbet Mag

Sorbet Magazine Celebrates  Its September Issue!

It’s impossible to say what we love most about our issue release parties, especially the most recent one at V...

The Escher String Quartet Opens Segerstrom Center’s 2018-2019 Chamber Music Series

Entertainment Sorbet Mag

The Escher  String Quartet  Opens  Segerstrom Center’s 2018-2019  Chamber Music Series

Thursday, November 1, 2018 in Samueli Theater Segerstrom Center for the Arts launches its 2018-2019 Chamber Se...

Segerstrom Center Kicks Off Its 2018-2019 Jazz Season With Jazz Master Ahmad Jamal

Entertainment Sorbet Mag

Segerstrom Center Kicks Off Its  2018-2019  Jazz Season  With Jazz Master Ahmad Jamal

Segerstrom Center for the Arts presents Grammy® Award Lifetime Achievement Award Winner Ahmad Jamal for one pe...

Beyond the Books Nadia Milner delivers "Top Notch Services"

Entertainment Jody Robinson

Beyond the Books  Nadia Milner delivers "Top Notch Services"

I remember when one of my college friends was appointed Payroll Specialist for a large company in Pasadena. Whe...

Ready for Open Enrollment?

Health & Wellness Sorbet Mag

Ready for  Open Enrollment?

In a few weeks, you’ll be making important choices about next year’s health plan. As you consider your opti...

Making Educated Choices for Your Loved One’s Care

Education Jody Robinson

Making Educated Choices for Your Loved One’s Care

A Q & A with Derek Mannion, founder of Alliance Eldercare You think it might be time to consider options f...

Lea Michele and Darren Criss Continue LM/DC Tour With North American West Coast Dates

Entertainment Sorbet Mag

Lea Michele  and  Darren Criss  Continue LM/DC Tour With North American West Coast Dates

November 2, 2018  in Segerstrom Hall Following the demand of fans and rave reviews, actors and musicians ...

Drug Free, Surgery Free & Needle Free: A New, Proven Treatment to Reverse Erectile Dysfunction

Health & Wellness Jody Robinson

Drug Free, Surgery Free & Needle Free:  A New, Proven Treatment to Reverse Erectile Dysfunction

A Q & A with Dr. Michael DeYoung, M.D., LaSara Medical Group Men with erectile dysfunction (ED) often suff...

Pilates and Yoga for the Neck

Health & Wellness Align Pilates Team

Pilates and Yoga for the Neck

There is no shortage of reasons why people suffer from neck pain, but primarily, the root cause is due to impro...

How Can I Tell If I Have Skin Cancer?

Health & Wellness Kristy Fleming, MD

How Can I  Tell If I Have  Skin Cancer?

People of all ages get skin cancer. Checking your skin can help you find skin cancer early when it’s highly t...

Broadway’s Smash Hit Beautiful The Carole King Musical returns to Segerstrom Center for the A…

Entertainment Sorbet Mag

Broadway’s Smash Hit Beautiful   The Carole King Musical   returns to  Segerstrom Center for the Arts

October 9 - 14, 2018 Back by popular demand, Beautiful – The Carole King Musical returns to Segerstrom Cente...

The Art of Craft @ The Brewhouse in San Juan Capistrano

Business Showcase Jody Robinson

The Art of Craft @ The Brewhouse in San Juan Capistrano

Let’s play a quick game: I’ll say a word and you write down the first thing that comes to mind. Ready? Beer...

Thinking Inside the MedBox. The New Standard in Medication Management Offers a Better Way to Dispens…

Health & Wellness Jody Robinson

Thinking Inside the MedBox. The New Standard in Medication Management Offers a Better Way to Dispense Prescriptions

In a recent conversation with my mother, I discovered something. Something that was a cause for pause as I pond...

Upcoming Events at Segerstrom Center for the Arts

Entertainment Sorbet Mag

Upcoming Events  at Segerstrom Center for the Arts

The Australian Pink Floyd Show September 6, 2018 Segerstrom Hall The 2018 Australian Pink Floyd Show Tour is ...

Segerstrom Center for the Arts Announces 2018 – 2019 Jazz Series

Entertainment Sorbet Mag

Segerstrom Center for the Arts Announces  2018 – 2019  Jazz Series

Ahmad Jamal Quartet and Shahin Novrasli Kenny Barron Quintet • Kurt Elling Christmas Branford Marsalis Quarte...

Compassionate Caregiving: Your Home Care, Inc.

Health & Wellness Jody Robinson

Compassionate Caregiving:  Your Home Care, Inc.

In-Home Care and the New! Senior Social Club & Stay Care Center in Laguna Woods Village Over the past deca...

RODAN + FIELDS: Changing Skin. Changing Lives.

Health & Wellness Jody Robinson

RODAN + FIELDS:  Changing Skin.  Changing Lives.

Friends are good for a great many things. Laughing with you, getting out of tight spots every once in a while, ...

Get Your Game Together with No Bogeys Golf

Entertainment Ann Laurence

Get Your Game Together with No Bogeys Golf

Everyone knows that you’re not supposed to pick favorites when it comes to family. But let’s be honest, we ...

Medicare: A + B = ? Where does D come in?

Insurance Denice Merrill

Medicare: A + B = ?   Where does D come in?

I’m getting so much information in the mail! What do I need to keep? I am the presenter at the Mission Hospi...

Johnny Mathis “The Voice of Christmas” Returns to Segerstrom Center for the Arts With a Speci…

Entertainment Sorbet Mag

Johnny Mathis  “The Voice of Christmas” Returns to  Segerstrom Center for the Arts  With a Special Holiday Concert

The legendary and undisputed “Voice of Christmas,” Johnny Mathis will brighten the holiday season when he r...