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

Cultivated Elegance in Carmel Valley

Travel Jody Robinson

Cultivated Elegance  in Carmel Valley

Relax, Reconnect and Retreat to the Bernardus Lodge & Spa Someone once told me that Carmel was about the “...

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 Quartet ...

The Story of Modern Dance Revolutionary Isadora Duncan

Entertainment Sorbet Mag

The Story of Modern Dance Revolutionary  Isadora Duncan

Four performances only August 10 – 12, 2018 • Segerstrom Hall Segerstrom Center for the Arts is proud to prese...

A Walk on San Diego's Wild Side

Entertainment Jody Robinson

A Walk on  San Diego's Wild Side

There is no question that San Diego’s Wild Animal Park has taken the concept of safari to the next level. A con...

Pets of the Month

Home Life Jody Robinson

Pets of the Month

Vera is a six year old sweetie with a great personality.  She absolutely loves to be petted and will fol...

Paradise Found. Paradise Automotive Service

Business Showcase Jody Robinson

Paradise Found.   Paradise Automotive Service

As a female, I may be feeding the stereotype when I pen this, but my first thought when I have to take my car...

Stepping into Music History: Nashville, TN

Travel Jody Robinson

Stepping into Music History:  Nashville, TN

It would be difficult to put Nashville on the list of must see places if you didn’t have some kind of appreciat...

Segerstrom Center for the Arts Movie Mondays. Line-Up FREE

Entertainment Sorbet Mag

Segerstrom  Center for the Arts   Movie Mondays. Line-Up FREE

Summer Film Series Features: Back to the Future July 9 The Princess Bride July 16 Moonrise Kingdom July 23 T...

What’s in a (Girl’s) Name?

Entertainment Joe D

What’s in a (Girl’s) Name?

What is in a name? Everything, at least in the 1950’s and early 60’s! Our name branded us. Whether it was a nic...

Seaside Dining at the Ritz-Carlton, Laguna Niguel: enoSTEAK & 180blu

Dining Out Jody Robinson

Seaside Dining at the Ritz-Carlton,  Laguna Niguel: enoSTEAK & 180blu

In the past decade, public attention has shifted to focus on the matter of how we obtain our food, and what exa...

Beacon Carpet Cleaning. Lighting the Way to a Cleaner Space

Business Showcase Sorbet Mag

Beacon Carpet Cleaning. Lighting the Way to a Cleaner Space

When I was a child, I remember my parents moving our family into a new house, with pristine, white carpets. Bea...

Brio Tuscany Grille

Dining Out Sorbet Mag

Brio Tuscany Grille

Winner of the Dana Point Times 2017 “Best of Dana Point” People’s Choice Award for “Best Happy Hour” and “Bes...

Expanding Your Practice at Spa Montage

Health & Wellness Jody Robinson

Expanding Your Practice at Spa Montage

I giggled my way through my first yoga class. I took one in college, alongside two of my girlfriends, and we ju...

Yanni Celebrates 25th Anniversary of His Iconic “Live at the Acropolis” Concert Segerstrom Center…

Entertainment Sorbet Mag

Yanni Celebrates  25th Anniversary  of His Iconic “Live at the Acropolis” Concert  Segerstrom Center for the Arts  June 10, 2018

Legendary performer and composer Yanni will celebrate the 25th Anniversary of “Live At The Acropolis” with a wo...

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 Quartet ...

Ina Garten Barefoot Contessa Returns to Segerstrom Center for the Arts

Entertainment Sorbet Mag

Ina Garten  Barefoot Contessa Returns to  Segerstrom Center for the Arts

Wednesday, December 5, 2018 at 7:30 p.m. Ina Garten, the American culinary icon, author of 10 New York Times b...

Is Your Enlarged Prostate Interfering with Your Quality of Life?

Health & Wellness Robert G. Pugach

Is Your Enlarged Prostate Interfering with Your Quality of Life?

Benign prostatic hyperplasia, (BPH), is a condition in men in which the prostate gland is enlarged and not canc...

Is Your Enlarged Prostate Interfering with Your Quality of Life?

Health & Wellness Robert G. Pugach

Is Your Enlarged Prostate Interfering with Your Quality of Life?

Benign prostatic hyperplasia, (BPH), is a condition in men in which the prostate gland is enlarged and not canc...

Pageant of the Masters “Under the Sun”

Entertainment Sorbet Mag

Pageant of the Masters “Under the Sun”

July 7 – September 1, 2018Shows Nightly at 8:30pm The Pageant of the Masters is arguably one of the most uniqu...

Luxury for Every Age at the Grand Velas Los Cabos

Travel Jody Robinson

Luxury for Every Age  at the Grand Velas  Los Cabos

When I was 24 and planning a trip with a girlfriend to Cabo San Lucas, our families thought the idea sounded, w...

Prev Next