Deductible Home Buying Expenses May 2026

: If you paid "discount points" to lower your interest rate, they are often fully deductible in the year you paid them, provided the loan is for your primary residence and meeting other IRS criteria. Nondeductible Closing Costs

Interest on home equity loans is only deductible if the funds were used to buy, build, or substantially improve the home securing the loan. deductible home buying expenses

Topic no. 504, Home mortgage points | Internal Revenue Service : If you paid "discount points" to lower