Tax moves to make in March 2013
Happy 177th Birthday, Texas!

Homeowner hazard insurance is crucial, but not tax deductible

A friend is having to deal with a cracked foundation, the result of years of Texas drought drying out and shifting the clay underneath her house.

Foundation crack

As a homeowner, I feel for my friend and the hassle and expense she's going through.

Here's hoping that her home insurance can help cover at least some of the repair costs.

As every homeowner knows, this policy is often a major expense. But if you've ever had a home calamity, as we did several years ago when our attic-installed (not our idea) water heater burst, you'll appreciate the coverage.

Even if you wanted to take a chance, if you have a mortgage, your lender usually requires that you get the policy.

And the tax news, which is today's Daily Tax Tip, is not good either.

Homeownership offers many tax breaks, but your property's hazard insurance coverage is not one of them.

The Internal Revenue Service specifically says you cannot deduct property insurance premiums.

I wish I had better news. But here's hoping the myriad tax write-offs for you abode free up enough cash so you can handle this home-related cost on your own without too much trouble.

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