235 Three Homeowner Deductions

When it comes to home ownership deductions, there are three primary deductions that you can deduct against your adjusted gross income for homeowners on Schedule A (Itemized Deductions). Property taxes can be deducted on property for which you pay taxes under the State and Local Taxes section on Schedule A. For 2017, there is no limitation of the amount of state and local taxes you can deduct against your adjusted gross income. Beginning on January 1, 2018, there is a $10,000 cap on the amount of state and local tax deduction when you file your taxes next year. Mortgage interest is another itemized deduction that homeowners pay be able to take against their adjusted gross income. The mortgage interest deduction begins phasing out for mortgage debt over $1,000,000. Beginning after December 14, 2017, mortgage interest begins phasing out for mortgage debt over $750,000. For 2017, home equity interest is deductible on the Schedule A for home equity less than $100,000. Beginning with 2018, home equity loan interest will not be deductible against your adjusted gross income. Modifications or improvements to your home for medical purposes is deductible as a medical expense for medical expenses in excess of 7.5% of your adjusted gross income. The modifications must be for a medical purpose.