DEFINITION of 'IRS Publication 530 - Tax Information For Homeowners'

A document published by the Internal Revenue Service (IRS) that details how tax filers should treat costs relating to owning a home, including closing costs, mortgage interest, real estate taxes and repairs. IRS Publication 530 outlines which home-related items can and cannot be deducted on the tax return, and what items a taxpayer should keep track of in order to set the cost basis of the property. Some expenses, such as depreciation, closing costs, forfeited down payments and insurance, cannot be deducted.

BREAKING DOWN 'IRS Publication 530 - Tax Information For Homeowners'

Taxpayers must fill out Schedule A of Form 1040 in order to itemize home-related expenses. Itemizing deductions in this way means that the standard deduction cannot be claimed. To claim a mortgage interest credit Form 8396 (Mortgage Interest Credit) has to be used, and Form 5405 (First-Time Homebuyer Credit and Repayment of the Credit) for credits relating to the purchase of a new home.

RELATED TERMS
  1. IRS Publication 936

    A document published by the Internal Revenue Service (IRS) that ...
  2. Schedule A

    Schedule A is a U.S. income tax form that is used by taxpayers ...
  3. Mortgage Interest Deduction

    A common itemized deduction that allows homeowners to deduct ...
  4. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  5. IRS Publication 535 - Business ...

    A document published by the Internal Revenue Service (IRS) that ...
  6. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
Related Articles
  1. Taxes

    Calculating the Mortgage Interest Tax Deduction

    The amount of money you save by paying your mortgage off quickly will far exceed any benefit from the mortgage interest tax deduction.
  2. Taxes

    An Overview of Itemized Deductions

    Not taking the standard deduction this year could save you hundreds of dollars.
  3. Taxes

    Major Tax Credits Expiring In 2013

    Here are the major changes and tips that you need to know before filing your taxes for 2013.
  4. Taxes

    Want A Bigger Tax Refund? Don't Itemize

    Six reasons why many taxpayers can save money and time by claiming the standard deduction.
  5. Taxes

    Calculating The Mortgage Interest Tax Deduction

    While the mortgage interest tax deduction is a cherished American tax break, it’s perhaps the most misunderstood aspect of homeownership.
  6. Taxes

    Trump's Paradox: Real Estate CEOs Brace for Change

    Real estate industry executives are expressing fears over Trump carrying out radical tax reform.
  7. Taxes

    Tax Credits And Deductions For Parents

    Your children can help you save on your taxes with these credits and deductions.
  8. Taxes

    Tax Deductions on Mortgage Interest

    If you're a homeowner, this is one item you want to understand and use on your return.
  9. Taxes

    How To Get The Most Money Back On Your Tax Return

    These tips will help you get a larger refund this year, while teaching you how to pay less taxes going forward.
  10. Personal Finance

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
RELATED FAQS
  1. How do I know whether to itemize deductions or take the standard deduction?

    Taking the standard deduction is the easiest and most common method chosen by filers, but many taxpayers may wind up paying ... Read Answer >>
  2. What Home-Buying Costs Can I Deduct from Taxes?

    Except for interest, points, real estate taxes and PMI, costs to acquire a home increase the asset’s tax basis and are not ... Read Answer >>
Hot Definitions
  1. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  2. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  3. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  4. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  6. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
Trading Center