I bought a home and January. I need to know what is tax deductible? I also have a interest only home loan. How can I deduct that on my income tax?
2006-12-20 09:14:46 · 6 answers · asked by smorapcs 3 in Business & Finance ➔ Taxes ➔ United States
you can deduct the following expenses on Schedule A of Form 1040:
real estate taxes paid at closing and during the year
home mortgage interest
points or loan origination fees
ive attached the IRS Publication regarding deductions for home purchases. it explains in detail what you can and cannot deduct.
2006-12-20 21:43:51 · answer #1 · answered by tma 6 · 0⤊ 0⤋
You will get a 1098 from the mortgage company in January. You should also refer to the HUD-1 you got when you bought. If you cannot interpret that, you should engage a CPA. First years of property ownership are tricky if you do not know what you are doing. You can also deduct property taxes. It is unlikely, but that may also be on the HUD-1. More likely, it will be on the 1098, if the taxes are escrowed.
Did you pay points? Those are also generally deductible. Points paid on a purchase are deductible in full in the year paid. Points on a refinance must be amortized over the life of the loan.
2006-12-20 09:20:25 · answer #2 · answered by skip 6 · 1⤊ 0⤋
You have to file a long form. Home interest is almost always deductible. You will need a tax man to determine it there were costs of the loan that also maybe deductable
2006-12-20 09:49:25 · answer #3 · answered by rallman@sbcglobal.net 5 · 0⤊ 1⤋
Mortgage interest, property taxes, state income taxes among other things. Get a copy of Schedule A from www.irs.gov to see the whole list. If you're not sure, see any tax preparer.
2006-12-20 10:26:35 · answer #4 · answered by crazydave 7 · 0⤊ 0⤋
+ Look it up to be sure, but your load interest, a portion of the points to get the loan, and you town taxes should all be deductible.
2006-12-20 09:19:22 · answer #5 · answered by Clamdigger 6 · 6⤊ 1⤋
As different's have reported, you may in basic terms deduct the tax, no longer the activity or outcomes. you apart from mght must be careful approximately how overboard you get with expected state earnings taxes--you're no longer allowed to overpay to the factor you control your earnings. finally, in case you have assets taxes, you may no longer prepay them without the invoice in hand. My state cooperates in this and mails out the invoice in October, in spite of the shown fact that it quite is paid November to January without penalty. subsequently i will pay two times in one tax year, no penalty. (I itemize in even numbered years in basic terms.) My father's state invoice in June. Paying two times could no longer paintings. He could no longer prepay in December without the invoice (this has been to tax courtroom) and the outcomes and activity have been terrible if he waited till January. and despite in case you think of you're doing each and every thing properly, run the style 6251--all deducted taxes get extra back for AMT calculations. in case you have in no way paid AMT, you will possibly be shocked which you will possibly be undertaking to it.
2016-10-15 08:09:37 · answer #6 · answered by ? 4 · 0⤊ 0⤋