Final answer:
Federal income tax regulations allow homeowners to reduce their taxable income with deductions for repairs and maintenance, hazard insurance premiums, principal and interest on their mortgage loans, and real estate taxes.
Step-by-step explanation:
Federal income tax regulations allow homeowners to reduce their taxable income by amounts paid for:
- Repairs and maintenance: Homeowners can deduct expenses for repairs and maintenance done on their property.
- Hazard insurance premiums: Homeowners can deduct the premiums they pay for hazard insurance, which protects their property against natural disasters.
- Principal and interest: Homeowners can deduct the interest they pay on their mortgage loans, as well as a portion of the principal payment.
- Real estate taxes: Homeowners can deduct the property taxes they pay to their local government.