Homeowners Information for Tax - IRS tax forms

1 ContentsWhat's You Can and Can t Interest To Get Tax 's NewExpired tax benefits. Certain tax benefits, in-cluding the following, expired on December 31, itemized deduction for mortgage insur-ance premiums;The credit for nonbusiness energy debt forgiveness. The income ex-clusion for discharges of indebtedness income on a principal residence made in 2017 expired on January 1, 2017. However, you can exclude from gross income any discharges of qualified principal residence indebtedness made after 2006 and before 2017, or subject to an arrange-ment that was entered into and evidenced in writing before the time this publication went to print, the itemized deduction for mort-gage insurance premiums and the credit for nonbusiness energy property had ex-pired. You can t claim a deduction for these ex-penses paid or incurred after 2016.

2 To find out if legislation extended these deductions so you can claim them on your 2017 return, go to developments. For the latest informa-tion about developments related to Pub. 530, such as legislation enacted after it was pub-lished, go to Affordable Modification Program (HAMP). If you benefit from Pay-for-Perform-ance Success Payments, the payments aren t taxable under Hit Fund and Emergency Home-owners' Loan Programs. If you are a home-owner who received assistance under a State Housing Finance Agency Hardest Hit Fund pro-gram or an Emergency Homeowners ' Loan Pro-gram, you may be able to deduct all of the pay-ments you made on your mortgage during the year. For details, see Hardest Hit Fund and Emergency Homeowners ' Loan Programs un-der What You Can and Can't Deduct, of first-time homebuyer credit.

3 Generally, you must repay any credit you CAUTION!Department of the TreasuryInternal Revenue ServicePublication 530 Cat. No. 15058 KTaxInformation forHomeownersFor use in preparing2017 ReturnsGet forms and other Information faster and easier at: (English) (Espa ol) ( ) ( ) (Pусский) (Ti ngVi t) Userid: CPMS chema: tipxLeadpct: 100%Pt. size: 8 Draft Ok to PrintAH XSL/XMLF ileid: .. tions/P530/2017/A/XML/Cycle04/source(Ini t. & Date) _____Page 1 of 15 13:34 - 12-Jan-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 12, 2018claimed for a home you bought if you bought the home in 2008. See form 5405 and its in-structions for details and for exceptions to the repayment of missing children. The Inter-nal Revenue Service is a proud partner with the National Center for Missing & Exploited Children (NCMEC).

4 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you rec-ognize a publication provides tax Information for Homeowners . Your home may be a house, con-dominium, cooperative apartment, mobile home, houseboat, or house trailer that contains sleeping space and toilet and cooking following topics are you treat items such as settlement and closing costs, real estate taxes, sales taxes, home mortgage interest, and you can and can t deduct on your tax tax credit you can claim if you re-ceived a mortgage credit certificate when you bought your you should keep track of adjustments to the basis of your home. (Your home's basis generally is what it cost; adjustments include the cost of any improvements you might make.)

5 What records you should keep as proof of the basis and adjusted and suggestions. We welcome your comments about this publication and your suggestions for future can send us comments through Or you can write to:Internal Revenue ServiceTax forms and Publications1111 Constitution Ave. NW, IR-6526 Washington, DC 20224 Although we can t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms , instructions, and forms and publications. Visit to download forms and publications. Otherwise, you can go to to order current and prior-year forms and instructions. Your order should arrive within 10 business questions. If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this ItemsYou may want to see:PublicationSelling Your HomeResidential Rental PropertyCasualties, Disasters, and TheftsBasis of AssetsCommunity PropertyBusiness Use of Your HomeHome Mortgage Interest DeductionForm (and Instructions)Repayment of the First-Time Homebuyer CreditMortgage Interest CreditSee How To Get Tax Help, near the end of this publication, for Information about getting publi-cations and You Can and Can t DeductTo deduct expenses of owning a home, you must file form 1040, Individual Income Tax Return, and itemize your deductions on Schedule A ( form 1040).

6 If you itemize, you can t take the standard section explains what expenses you can deduct as a homeowner. It also points out expenses that you can t deduct. There are three primary discussions: real estate taxes, sales taxes, and home mortgage , your real estate taxes and home mortgage interest are included in your house house payment. If you took out a mort-gage (loan) to finance the purchase of your home, you probably have to make monthly house payments. Your house payment may in-clude several costs of owning a home. The only costs you can deduct are real estate taxes ac-tually paid to the taxing authority and interest that qualifies as home mortgage interest. These are discussed in more detail nondeductible expenses that may be included in your house payment include:Mortgage insurance premiums,Fire or homeowner's insurance premiums, andThe amount applied to reduce the principal of the 's or military housing allowance.

7 If you are a minister or a member of the uni-formed services and receive a housing allow-ance that isn t taxable, you still can deduct your real estate taxes and your home mortgage in-terest. You don t have to reduce your deduc-tions by your nontaxable allowance. For more Information , see Pub. 517, Social Security and Other Information for Members of the Clergy and Religious Workers, and Pub. 3, Armed Forces' Tax Guide. 523 527 547 551 555 587 936 5405 8396 Nondeductible payments. You can t deduct any of the following , including fire and comprehen-sive coverage, mortgage insurance, and ti-tle you pay for domestic cost of utilities, such as gas, electric-ity, or settlement costs. See Settlement or closing costs under Cost as Basis, later, for more deposits, down payments, or ear-nest Hit Fund and Emergency Homeowners ' Loan ProgramsYou can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the follow-ing two received assistance State Housing Finance Agency (State HFA) Hardest Hit Fund pro-gram in which program payments could be used to pay mortgage inter-est, Emergency Homeowners ' Loan Program administered by the Depart-ment of Housing and Urban Develop-ment (HUD)

8 Or a meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main you meet these conditions, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (in-cluding the amount shown on box 3 of form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received), and box 11 (real property taxes). However, you aren t re-quired to use this special method to compute your deduction for mortgage interest and real estate taxes on your main Estate TaxesMost state and local governments charge an annual tax on the value of real property. This is called a real estate tax.

9 You can deduct the tax if it is assessed uniformly at a like rate on all real property throughout the community. The pro-ceeds must be for general community or gov-ernmental purposes and not be a payment for a special privilege granted or service rendered to Real Estate TaxesYou can deduct real estate taxes imposed on you. You must have paid them either at settle-ment or closing, or to a taxing authority (either directly or through an escrow account) during the year. If you own a cooperative apartment, see Special Rules for Cooperatives, 2 of 15 Fileid: .. tions/P530/2017/A/XML/Cycle04/source13:3 4 - 12-Jan-2018 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before 2 Publication 530 (2017)Where to deduct real estate taxes. Enter the amount of your deductible real estate taxes on Schedule A ( form 1040), line estate taxes paid at settlement or clos-ing.

10 Real estate taxes are generally divided so that you and the seller each pay taxes for the part of the property tax year you owned the home. Your share of these taxes is fully deduc-tible if you itemize your of real estate taxes. For federal income tax purposes, the seller is treated as paying the property taxes up to, but not includ-ing, the date of sale. You (the buyer) are treated as paying the taxes beginning with the date of sale. This applies regardless of the lien dates under local law. Generally, this Information is in-cluded on the settlement statement you get at and the seller each are considered to have paid your own share of the taxes, even if one or the other paid the entire amount. You each can deduct your own share, if you itemize deductions, for the year the property is You bought your home on Sep-tember 1.