Which items typically qualify as tax deductions for homeownership?

• A. Deductions for mortgage interest and property taxes.
• B. Tax credits for energy-efficient improvements.
• C. Tax-free capital gains on sale.
• D. Deductions for vehicle registration.

Answer: (A)

Mortgage interest and property taxes are the classic deductions tied to owning a home. They’re itemized deductions you claim on Schedule A if you choose to itemize instead of taking the standard deduction, and they reduce your taxable income, which lowers your overall tax bill based on your tax rate.

Energy-efficient improvements, by contrast, typically come as tax credits, which directly reduce the tax you owe rather than your taxable income. Capital gains exclusions on selling a home aren’t deductions at all—they’re exclusions from income under certain conditions. Vehicle registration has no homeownership deduction attached to it.

So the typical homeownership deductions you’d claim are mortgage interest and property taxes.