Interest on your home loan
		Property taxes
		Discount Points

These expenses are deducted from gross income before calculating the taxes owed. So if you pay $12,000 a year in home equity loan interest, you deduct $12,000 from your gross income. That's $12,000 less of your income that can be taxed if you already itemize deductions. Which can make a huge difference in your tax bill. (Figures cited are for example only.)

	Some important points to consider: The tax benefit is particularly attractive during the early years of the loan because a higher proportion of your early payments go to paying interest and that's precisely what's deductible. You can take these tax deductions only if you itemize your deductions (rather than using the standard deduction). You'll get a tax break as well on any appreciation in value when you sell your home. Individuals can net up to $250,000 ($500,000 for a married couple) in tax-free profit when they sell their home. (Restrictions apply, so ask your tax advisor.)

		Home improvement expenses (other than interest on a home improvement loan)
		Closing costs, except for prorated property taxes and discount points
		Real estate commissions
		Home inspection, appraisal or loan application fees
		Homeowner and co-op dues
		Homeowners, flood and other insurance costs

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For complete details on how deductibility of home loan interest and other expenses will affect your specific tax situation, ask your tax advisor. Or review a copy of IRS Publication 936, Home Mortgage Interest Deduction. Or you can call 1-800-TAX-FORM (1-800-829-3676) to order a free copy.