There’s a reason some homeowners refer to their residences as “money pits.” Owning and maintaining a home can be expensive. So it’s important to keep in mind the tax breaks available to homeowners, starting with the mortgage interest deduction. If you itemize deductions, you generally can deduct interest on up to $750,000 in mortgage debt (with some exceptions). You also usually can deduct state and local real estate tax up to $10,000. But taxpayers generally can’t deduct expenses, including home insurance premiums, depreciation, utilities, homeowners’ association fees and home repairs. (A portion of some of these expenses may be deductible if you qualify to claim the home office deduction.)
