Itemized Deductions Homeowners - 2021 | Best Guide - CPA Clinics
The IRS defines a home as any house, condominium, cooperative, mobile home, boat, or similar property that has sleeping space, toilet facilities, and cooking facilities. Homeowners may qualify for the following deductions.
You can deduct real estate taxes assessed on all the real estate you own. You are not limited to the tax on just one or two homes.
If you borrow money to buy, build, or substantially improve your main or second home, the mortgage interest may be claimed as an itemized deduction.
Your lender will generally give you Form 1098, Mortgage Interest Statement, to tell you how much interest you have paid for the tax year.
A home mortgage is any loan secured by your main or second home, including first and second mortgages, home equity loans, and refinanced loans. The loan must be legally recorded, with the home as collateral for the debt. You must be legally liable to make the payments. For example, if you borrow money from your parents to make a down payment on your home, you cannot deduct the interest you pay them unless the loan is legally recorded with the home as collateral.
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