What deductions can homeowners take?

If you just bought a house, you may be able to deduct:

• Mortgage interest (including points)
• Property (real estate) tax
• Mortgage insurance (PMI or MIP)

Unless it's a rental, you won't be able to deduct homeowner's insurance, repairs, or home improvements. Also, moving expenses are no longer deductible for most taxpayers.

Be sure to hold onto your closing statement, as it lists expenses that could be deductible, like points and prepaid interest.

Also, start saving your home improvement receipts. You won't be able to deduct those right now, but they can reduce your gain (along with any capital gains tax) when you sell in the future.