How to Deduct Homeowners Insurance Premiums

Save

Although maintaining homeowners' insurance is a requirement if you have a mortgage on your property, it is not deductible as a personal itemized deduction. There are, however, certain circumstances under which you may be able to deduct some or all of your premiums.

  • Determine if you are eligible to work from home. If your employer will allow you to telecommute and maintain an office in your home, you can deduct a portion of your household expenses as an unreimbursed employee expense. The deductible amount would be determined by the percentage of your home that you use for work.

  • Calculate what area of your home is used for self-employment income. Your home must be your principal place of business for this income. Storage of inventory for your business would also allow you to deduct a percentage of allowable household expenses, including homeowners' insurance.

  • Calculate what portion of your insurance cost is related to rental income. For example, if you own a two-family home, live in one unit, and rent the other, you could deduct 50 percent of the cost of insuring that home.

References

  • Photo Credit house ,home image by Greg Pickens from Fotolia.com
Promoted By Zergnet

Comments

Resources

You May Also Like

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!