Is it better to put real estate taxes and mortgage insurance on home office or in real estate on tax form?

I was just filling out the H&R Block online tax form and put the information in the "home office" section to get the write off for my office (obviously) but then I came across the part in Schedule E (I think it was E) about real estate taxes and there was a blank for mortgage insurance as well.

Would I be better off putting both of those with the home office, the Schedule E (or whatever it is), or are they exactly the same?

3 Answers

  • Drew
    Lv 4
    8 years ago
    Favorite Answer

    Schedule E is to report mortgage interest and taxes for a rental property. This doesn't seem to apply in your case.

    You cannot deduct the entire amount of your real estate taxes and mortgage insurance as a "home office" expense. You have to figure what percentage of your house is FULLY devoted to a home office. (If you use a spare bedroom as a home office, but there is still a bed in there that guests sleep in when they visit, you cannot even base it on that entire room.)

    I use an extra bedroom as a home office. The room is about 12x12 with a closet of roughly 3x5. This room is used for nothing else other than a home office. Total is about 159 sq ft. My whole house is about 1600 sq ft, so the office is about 10%.

    You must meet certain criteria to be able to deduct a home office. You can't just deduct it because you do work in a room of your home. There are specific rules the IRS has established to determine if it is a true home office. The Small Business Administration has a decent site with some info about it. See Sources below for the link. The IRS also has information on it. See below as well.

    As far as deducting real estate taxes and mortgage insurance, these can be fully deducted (along with mortgage interest) on 1040 Schedule A. If your amounts are not more than the standard deduction, then take the standard deduction.

  • 8 years ago

    Everything Drew said is correct, except for one thing. If your mortgage interest and taxes claimed on your home office total 10%, then only the remaining 90% can be claimed on Schedule A. You can never claim deductions totaling more than you actually pay.

  • Anonymous
    4 years ago

    if he paid the loan and taxes and coverage, definite he can use them as deductions. coverage can in uncomplicated words be deducted although even if that's a employ living house that he collects employ on. living house coverage isn't deductible on a important living house. How did he happend to get the tax information for the living house? i advise if he secured the loan, identify, even although he by no skill lived in it, someone is sending him the archives. it may well be fraud or he has more beneficial authentic property tied up than you imagine he does.

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