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
: You can deduct interest paid on up to $750,000 of mortgage debt ($375,000 if married filing separately) for a first or second home. deductible home buying expenses
The Internal Revenue Service (IRS) identifies three major categories of homeownership expenses that you can typically deduct: Understanding Your Deductible Home Buying Expenses Buying a