‘I bought a house – what can I deduct on my taxes?’

 

WASHINGTON – Nov. 25, 2013 –  “Is a downpayment on a house tax deductible?” some homebuyers ask. The answer: Unfortunately, no, it’s not.

In general, buyers seeking the true cost of homeownership can factor the following in as deductible on the U.S.’s yearly income taxes:

• Mortgage loan interest
• Real estate taxes
• Closing fees (points) that decrease the rate of the mortgage loan
• Mortgage insurance required on all FHA and VA loans, and on conforming or conventional mortgages higher than 80 percent loan-to-value (LTV).