Is homeowner’s insurance tax deductible? What about premiums?
Owning a home can get expensive. You may look for ways to reduce costs including turning to your tax return. Some taxpayers have asked if homeowner’s insurance is tax deductible. Here’s the skinny: You can only deduct homeowner’s insurance premiums paid on rental properties. Homeowner’s insurance is never tax deductible your main home.
It’s possible that some homeowners are thinking of the home mortgage interest deduction. Although you might pay them both, keep in mind that mortgage insurance and homeowner’s insurance aren’t the same thing:
- Homeowner’s insurance protects you against loss from damage to the property.
- Mortgage insurance protects you in case you can’t make your mortgage payments.
However, you can deduct mortgage insurance premiums on both your personal home and rental properties. Income restrictions apply to mortgage insurance premiums on your home.
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