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Asked 12/6/2007

IS THE HOMEOWNERS INSURANCE DEDUCTABLE ON A CLAIM TAX DEDUCTIBLE?

I HAD SOME WATER DAMAGE DONE ON MY FLOOR FROM THE AIR CONDITION. THE PUMP DRAIN GOT CLOGGED AND THE CONDENSATION BACKED UP. IT RUINED MY LAMINATED FLOOR IN THE LIVING ROOM AND HALLWAY. THE FLOOR GOT REPLACED BY THE INSURANCE COMPANY. CAN I USE THE $250 DEDUCTIBLE WHICH I HAVE TO PAY AS A TAX DEDUCTION?

 
 
 
 
 
Answers

Answer 1/4 - Submitted 10/8/2009

Yes you can

 
 

Answer 2/4 - Submitted 8/3/2010

The answer depends on particular homeowner situation. Your problem is more genuine.
Usually homeowners insurance is tax deductable for people who use the properties they own for residence purpose.

 
 

Answer 3/4 - Submitted 10/29/2010

This question is best answered by a tax professional, because it lies within the Internal Revenue Service tax laws applicable to "deductible casualty losses" which have to be as much as $3,000 to qualify as a qualified deductible.

I quote from the previous poster: "Usually homeowners insurance is tax deductable for people who use the properties they own for residence purpose,"

I don't think the above statement is true, especially if it is used by owner as his/her own residence. It could be deductible against taxable income, if it was rental property. Here, again you should consult a tax professional on any federal or state tax question.

"HOMEOWNERS" is the key word in your question. The Homeowners Insurance Policy is available only for the residence occupied by the owner. It provides greater coverages at more attractive premium costs than does the rental dwelling policy, therefore, the answer to your question is an emphatic "NO", unless the dollar amount paid out of your pocket for repairs amounts to a large casualty loss, as described in IRS regulations.

 
 

Answer 4/4 - Submitted 10/29/2010

I agree with the answer above that it is deductible as a casualty loss. Home owners insurance is typically not deductible. If you have a business or the property is a rental, then it may be deductible. You should probably talk to your CPA. I hope this answers your question. Thank you.

 
 
 
 
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