Homeowners in Longwood, FL often look for ways to cut living expenses and free up cash for savings or recreation. As you prepare your next tax return, you may wonder if you can safely deduct home insurance premiums from your taxable income. This could significantly reduce how much money you owe, especially if you own a large house.
This deduction is only feasible under certain circumstances. Unfortunately, the majority of homeowners don’t qualify. If you use your entire home for private residential purposes, you can’t deduct these costs. This holds true even when a mortgage payment includes the insurance premiums. You can only deduct the interest in a home loan payment.
On the other hand, you may be able to subtract the expense of homeowners’ insurance if you rent your house to someone else. Property taxes and repairs are often deductible in this situation as well. If you pay for multiple years of coverage with a single payment, you’ll need to deduct one year at a time when filing returns.
Do you run a business in a portion of your house? If so, you might qualify to deduct a percentage of your insurance and utility bills. For instance, perhaps you have a 200 square-foot office in a 1,400 square-foot residence. If you only use the office for business purposes, the IRS would probably allow you to claim 14 percent of these costs as a deduction.
Regardless of whether or not you can deduct premiums from your taxes, you’ll save money on homeowners insurance by finding a more affordable policy. The experienced agents at Blanchard Insurance can help you accomplish this. Our independent agency has served the Longwood, FL area for more than two decades. To get started, please call Blanchard Insurance today at 407-788-8640.