Deductible Home Buying Expenses · Bonus Inside

: If you paid "discount points" to lower your interest rate, they are often fully deductible in the year you paid them, provided the loan is for your primary residence and meeting other IRS criteria. Nondeductible Closing Costs

The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct: deductible home buying expenses

This limit applies to loans taken out after December 15, 2017. : If you paid "discount points" to lower

This cap is reduced to $20,000 for those who are married and filing separately. Understanding Your Deductible Home Buying Expenses Buying a

Understanding Your Deductible Home Buying Expenses Buying a home is one of the largest financial commitments you'll make, but it also opens the door to significant tax advantages. While many of your upfront closing costs are non-deductible in the year you purchase, several key expenses can lower your tax bill if you choose to rather than take the standard deduction. Primary Deductible Expenses