Itemized Deductions - Homeowners 2021
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.
Real Estate Taxes
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.
- Only the amount actually paid for tax is deductible. Do not confuse this amount with deposits made to your
mortgage escrow account.
- Foreign property taxes are not deductible.
- Charges for trash collection, sewer, etc., are sometimes added to real estate tax bills. These amounts are not deductible as real estate taxes.
- Special assessments are sometimes added to real estate tax bills. Assessments are not necessarily deductible as real estate taxes.