As a homeowner, you may receive a tax break on your taxable income by taking itemized deductions on your personal tax return for mortgage insurance premiums and property taxes. But you may be wondering, “is home insurance tax deductible?” In most cases, it’s not. The IRS considers seguro de viviendas
to be a non-deductible personal expense. However, there could be some situations or business purposes where you may be able to partially deduct certain expenses, like if you run a business out of your home.
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3 Homeowners Insurance Tax Deductions
Although home insurance premiums are typically not tax deductible, there are three common scenarios where other types of homeowners insurance costs may be deductible.
1. Rental Income Deductions
If you rent out a home or condo to tenants, you may be able to deduct your home insurance premiums as a rental expense. To claim a deduction, the tax form you’ll need to file is Schedule E (Form 1040) – Supplemental Income and Loss. This form will ask you to provide your income and expenses like cleaning, maintenance and utilities for your rental property.
2. Home Office Deductions
If you work from home in a dedicated office space, you may be able to deduct a portion of your homeowners insurance premiums. To determine the portion you may be able to deduct, measure the square footage of your home office and divide that amount by the total square footage of your house. So, if 10% of your home’s square footage is used as an office space, you may be able to deduct 10% of your insurance premiums. File Schedule C (Form 1040) – Profit or Loss from Business to claim this deduction.
3. Casualty and Theft Loss Deduction
You may be able to deduct denied or partially covered home insurance claims that occurred during federally declared disasters from your taxes. For example, events that may qualify for this type of deduction include:
You’ll need to file a Schedule A (Form 1040) – Itemized Deductions to deduct damages from these declared disasters from your taxes.
3 Additional Tax-Deductible Expenses for Homeowners
Although homeowners insurance isn’t tax deductible, there are many other types of expenses that homeowners may be able to deduct. Examples of deductions include:
1. Mortgage Interest Deduction
If you itemize deductions on your personal tax return, you may be able to deduct mortgage interest on your home.
2. Property Tax Deduction
You also may be able to deduct state or local property taxes if you itemize deductions on your personal tax return.
3. Accessibility Improvements Deduction
Making improvements to your home to make it more accessible for medical reasons, like adding wheelchair ramps or stairlifts, may also qualify as an itemized deduction on your personal tax return.
Disclaimer: The general tax information provided above is only for illustrative purposes. You should consult with a qualified tax professional to determine whether any of these tax deductions are applicable to your personal situation.
Última actualización: 24 de julio de 2023
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