A huge selling point for many people trying to realize the American Dream of home ownership has been the promise of tax deductions available from the Feds.  Is it really worth it?  What exactly can you claim?

To answer the first question, YES!  If you are turned off by home maintenance, consider a condo or town home where all the outside maintenance is done through your HOA fees.  Otherwise if you’re eligible for any of the home-buyer tax credits now in effect, NOW is the time to get started.  Do not delay because you have to be in a binding contract no later than April 30th.

Besides getting money back from the government for purchases, other homeowners may also deduct their mortgage interest from their taxes as they file the income tax.   In addition to deducting your property taxes, you can also claim 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, according to Turbo Tax.

What can’t you deduct?

Dues to a homeowners association

Insurance on your home

Appraisal fees for your home

The cost of improvements to your home, except in the relatively rare case where they qualify as a medical expense. (But keep those receipts. They may help you reduce your taxes when you sell your home.)

Want to know more?  Click here.