Home ownership is part of the American dream. According to the U.S. Department of Housing and Urban Development, about 65.5% of Americans own their own homes in the second quarter of 2012. There are many reasons that we want to own rather than rent a home—for example, as a way to build up equity. But there are also sound tax reasons favoring home ownership. Certain expenses of home ownership are deductible. And when you sell your home, some or all of your profit may be tax free. If you had problems with your mortgage or lost your home to foreclosure, there may be special tax breaks for you.
This chapter explains:
Casualties and disasters that can befall your home, and the deductions you can claim for them, are explained in Chapter . The home office deduction for using a portion of your home for ...