1. Mortgage Interest Deduction
If you have a mortgage on your primary or secondary home, you may deduct the interest paid, up to loan balances of $750,000 for loans taken out after December 15, 2017. For older loans, the cap is $1 million. This is one of the most significant tax breaks for homeowners.2. Property Tax Deduction
Homeowners can deduct state and local property taxes paid on real estate they own. However, this deduction is subject to the SALT cap, which limits the total deduction for state and local taxes (including property, income, and sales taxes) to $10,000 per return ($5,000 if married filing separately).3. Mortgage Insurance Premiums
If you pay mortgage insurance premiums (such as PMI on conventional loans or MIP on FHA loans), these may be deductible as mortgage interest. However, this deduction phases out for taxpayers with adjusted gross incomes (AGIs) above $100,000 ($50,000 for married filing separately).4. Home Office Deduction
If you use part of your home exclusively and regularly for business purposes, you can deduct a portion of your home expenses, such as mortgage interest, utilities, and maintenance. This deduction is available to self-employed individuals, not W-2 employees.5. Residential Energy-Efficient Property Credit
This is technically a tax credit rather than a deduction, but it’s worth mentioning. Homeowners who make qualifying energy-efficient improvements, such as installing solar panels or energy-efficient HVAC systems, may qualify for a credit of up to 30% of the cost of these upgrades.6. Medical Home Improvements
Home improvements made to accommodate disabilities, such as wheelchair ramps, widened doorways, or stairlifts, may be deductible as a medical expense if the improvements primarily benefit the individual with the disability and do not increase the value of the home.7. Casualty and Theft Loss Deduction
If your home is damaged or destroyed by a federally declared disaster (e.g., hurricane, flood, wildfire), you may deduct the unreimbursed portion of your losses, subject to certain thresholds. This deduction is limited to disaster-related events declared by the federal government.8. Points Paid on a Mortgage
If you paid points (prepaid interest) when securing a mortgage, you might be able to deduct the full amount of those points in the year they were paid, or over the life of the loan, depending on the circumstances.9. Deduction for Home Equity Loan Interest
Interest on home equity loans or lines of credit (HELOCs) is deductible if the funds were used to buy, build, or substantially improve the home securing the loan. The $750,000 mortgage interest cap applies to the combined amount of the original mortgage and the home equity loan.10. Deduction for Loan Origination Fees
Certain loan origination fees paid when purchasing or refinancing your home may qualify as deductible, provided they are considered prepaid interest.Conclusion: Should You Itemize or Take the Standard Deduction?
While these tax deductions can offer significant savings for homeowners, they only benefit taxpayers who itemize their deductions. For 2024, if your total itemized deductions don’t exceed $13,850 (single filers) or $27,700 (married filing jointly), you’ll likely be better off taking the standard deduction. Homeownership comes with many perks, but understanding how to maximize your tax benefits is one of the most valuable. If you’re unsure whether to itemize or take the standard deduction, consulting with a tax professional can ensure you make the most informed decision for your situation.Next Steps
Use the buttons below to to set up a meeting. When addressing legal and tax matters, timing is critical; therefore, if you need assistance, it is important that you retain the services of a competent attorney as soon as possible. Should you choose to contact me, we will begin with an introductory conference—via phone—to discuss your situation. Then, should you choose to retain my services, I will prepare and deliver to you for your approval a formal representation agreement. Unless and until I receive the signed representation agreement returned by you, my firm will not have accepted any responsibility for your legal needs and will perform no work on your behalf. Please contact me today to get started.
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Attorney and CPA
/Meet Chad D. Cummings
I am an attorney and Certified Public Accountant serving clients throughout Florida and Texas.
Previously, I served in operations and finance with the world’s largest accounting firm (PricewaterhouseCoopers), airline (American Airlines), and bank (JPMorgan Chase & Co.). I have also created and advised a variety of start-up ventures.
I am a member of The Florida Bar and the State Bar of Texas, and I hold active CPA licensure in both of those jurisdictions.
I also hold undergraduate (B.B.A.) and graduate (M.S.) degrees in accounting and taxation, respectively, from one of the premier universities in Texas. I earned my Juris Doctor (J.D.) and Master of Laws (LL.M.) degrees from Florida law schools. I also hold a variety of other accounting, tax, and finance credentials which I apply in my law practice for the benefit of my clients.
My practice emphasizes, but is not limited to, the law as it intersects businesses and their owners. Clients appreciate the confluence of my business acumen from my career before law, my technical accounting and financial knowledge, and the legal insights and expertise I wield as an attorney. I live and work in Naples, Florida and represent clients throughout the great states of Florida and Texas.
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