I bought a House 7 months ago and invested some money on it about how much can I get for owning a home?

Question

I bought my house 7 months ago and am very curiouse. I put in new tile total cost 4,000(tile alone), carpet and invested in lots of things from The home Depot. We payed interests all year long about 6,000 or so. I am new to this and want to get an idea of how much I will get be getting back when I do my Taxes. Can you also claim your car or other things? Thanks

Answer 1

I would suggest that you get a copy of publication 17 from the IRS. This details the items that you can deduct from your taxes.
I am assuming that you are living in the house as your personal residence. The mortgage interest paid each year is an allowable itemized deduction along with the real estate taxes actually paid. Items paid into the mortgage company escrow account are not deductible until the escrow account pays the bill to the local government.
If you paid points on the settlement sheet when you bought the house they would be deductible this year. If there is an adjustment for real estate taxes paid by the seller you either have an additional deduction or a reduction in what you paid depending on how it was reported.
The cost of the new tile and anything else you bought to improve the property is added to your cost of the property and will reduce the gain on sale that you could eventually have. You should keep track of these items as it could be years before you will need to use them for tax purposes.
Pub 17 will give you real insight into all of the items that are deductible. A car is only deductible if it is used for business purposes, However you can get a mileage deduction for medical or charitable use of the car.

Answer 2

If you itemize, you can deduct the interest you paid, plus real estate taxes. You can deduct state and local income and miscellaneous taxes also. Download schedule A and instructions from irs.gov to see what other things you can deduct.

To estimate the amount you'll save on your taxes by itemizing, estimate your total itemized deductions, then subtract the standard deduction that's applicable to you ($5150 if you're single, $10,300 if you're married filing jointly, $7550 if you're married filing jointly - these will be a little higher if you're over 65). Then take that difference times the tax bracket you're in to get a rough idea of what you'll save by itemizing.

The reason you have to subtract the standard deduction to see what the house saves you is that you get to take that anyway, so only any extra that you have in deductions is saving you taxes because of the house. If you already itemize, then the house taxes and interest times your bracket percent gives you your savings. When you actually file, you will deduct your total itemized deductions or the standard deduction, whichever is larger.

Improvements that you make to the house that are not routine maintenance items can be added to the basis of your house when you sell it to calculate any capital gains tax. You don't deduct those when you pay them. And for maintenance items rather than improvements, you can't deduct them at all. Most of your Home Depot items and your floor coverings would probably be considered maintenance, not improvements.

Answer 3

The upgrades to the home increase the Value of your home. So when you sell it, the upgrade will bring a better price (tho nothing significant) The value of your home is determined by the market in your area and the "Assessed Value"

Now for Tax purposes...YAHOO!! You get to write off 100% of the Interest payments you put into it. For taxes, you can deduct ALL THE INTEREST you paid on your home on your monthly mortgage payments, Later as you begin to make payments toword the principle (The actual cost of the house) you will not be able to deduct as much. But you'd have to be in the home 10 years plus to start seeing a significant drop in your tax write off.

So as an example, if you pay $1500 a month for your home, and $1490 is INTEREST you paid (and should be) then that amount is Tax Deductiable. (1490 x 12 months is $17,880 write off) Hope this helps....tried to make it simple. That does not mean you will get that much money back! But to be sure, you'll do better than you did as a renter! Good luck.

Answer 4

It sounds to me like he has a eating problem, and which will cloud each and every thing else in his existence. i do no longer inevitably consider AA, because of the fact AA isn't for each alcoholic. AA makes a speciality of fixing alcohol with God. once you're the two non secular then it particularly is the answer; if he's no longer non secular in any respect then what he desires is extreme medical care. What maximum human beings don't understand is an alcoholic can no longer bypass to rehab, detox and then come out and be effective. Staying sober demands a inebriated to completely relearn a thank you to stay. there are maximum of triggers which will turn him decrease back to alcohol. you're able to stop giving him money. flow YOUR money into your man or woman inner maximum debts and stop giving in to his demands. permit him understand if he needs money for alcohol he desires to bypass out and earn it on his own. As on your substantial question - no you would be able to truly answer that yet your husband, and that i think he can no longer particularly answer it until eventually he sobers up.

Answer 5

i'm not an expert at this but i think you need your house appraised before you can formally write down the fair value of your house in your tax forms. consult with your tax accountant, they should know.