Mortgage Interest

• The interest paid on your home mortgage is generally tax deductible, as long as your mortgage is less than $1 million and your mortgage is to buy, build or improve your home. A prepayment penalty may also be deductible.
  
  

First-Time Homebuyer Credit

• If this is your first home, you may be able to take a credit of $7500 or 10% of the purchase price of your home.
  
  

Real Estate Tax

• Generally, you can deduct real estate tax paid. Without itemizing, you may be able to deduct $500, or $1000 if married filing together.
  
  

Sales Tax

• You can deduct state and local sales tax instead of local income tax.
  
  

Mortgage Insurance Premiums

• You can deduct the premiums paid on qualifying mortgage insurance.