Can I Deduct Homeowners/Daycare Insurance?

[legomom922]

My mortgage payment includes property tax, school , tax and the homeowners insurance, so which elements can I write off? Do I have to get the break down of each charge? I know the mortgage payment (the house itself) I have to depreciate correct? So I'm just unsure what to do with the rest of it.

Also, I had a daycare rider on my homeowners policy, so is that deductable and would it be at 100%?

[TomCopeland]

House expenses

You can deduct the business portion of all your property taxes on Form 8829. Lump all the taxes together and call them real estate taxes. You do not depreciate your mortgage payments! Instead, you depreciate your home based on its purchase price. So, ignore how much you paid on your mortgage.

You can deduct 100% of your daycare rider on your homeowners insurance policy and the business portion of your homeowners insurance.


Join me this Monday for my webinar "How to Reduce Your Taxes for 2010 and 2011" sponsored by daycare.com. For further info: https://www.daycare.com/news/taxes/t...d-webinar.html

[legomom922]

You can deduct the business portion of all your property taxes on Form 8829. Lump all the taxes together and call them real estate taxes. You do not depreciate your mortgage payments! Instead, you depreciate your home based on its purchase price. So, ignore how much you paid on your mortgage.

You can deduct 100% of your daycare rider on your homeowners insurance policy and the business portion of your homeowners insurance.


Join me this Monday for my webinar "How to Reduce Your Taxes for 2010 and 2011" sponsored by daycare.com. For further info: https://www.daycare.com/news/taxes/t...d-webinar.html

Ok, so we dont claim any of our mortgage payments then? And that is because we depreciate our home?

[TomCopeland]

Homeowners

Correct. You can't count any of your monthly mortgage payments because you are getting this expense when you depreciate your home.