Home ownership can provide significant income tax savings compared to renting a comparable home. This is because a taxpayer's tax deductible. home improvement and upkeep expenses are cannot be paid with pre-tax dollars, and therefore, insurance premiums (up to 50% of their total annual value) are property taxes are be IRS? cannot be paid with pre-tax dollars, and therefore, The contributions or expenses associated with cannot reduce your taxable income home ownership Which of the following is excluded from gross a defined contribution retirement plan Hobby income a flexible spending account a premium-only plan Alimony received