As a first year homeowner, what can you write off when doing your taxes?

Question

I'm getting ready to do my taxes, and I want to make sure I account for everything that I can.

Answer 1

There will be an adjustment on page one of the settlement sheet, this is either an amount you paid to the seller or a refund by the seller of an amount that you paid. You would add or subtract this amount against the real estate taxes you paid. On page two of the settlement sheet you could see a charge for loan fees or points. These are deductible on schedule A of your tax return. You will receive a form 1098 from the mortgage company that will tell you how much interest you paid to them in 2006, this is deductible as mortgage interest. They should also show the amount of real estate taxes they paid out of your escrow account during the year. This amount as adjusted above is deductible as real estate taxes paid.
You can't deduct improvements etc. on your tax return, these items get added to your tax basis for the property and are taken into account when you sell the house.

Answer 2

Mortgage interest and points paid along with property taxes. Points are deductible in the year paid for a purchase money mortgage. The interest and points will be listed on a Form 1098 or similar statement from your mortgage lender.

Ignore the repondents that say you can deduct repairs and improvements. Those are not deductible.

You should keep accurate records of all improvements though as you can add them to your cost basis when you eventually sell the property. This will reduce the gain on the sale and may save taxes at selling time. Certain closing costs can also be added to your cost basis (or at sale time, deducted from the selling price) that will have the same effect. Don't worry about what is what for now as the laws may well change by the time you sell.

Ordinary repairs and other ownership costs such as homeowner's insurance are never deductible for tax purposes.

Answer 3

Take a look at a Schedule A: Itemized Deductions. It will list them all there. The first one that comes to mind is interest. Good Luck!

Answer 4

Closing costs, points, and the interest paid until the end of the year

Answer 5

Buy a tax software at Walmart. Taxcut or Turbotax. The software does it all for you.

Answer 6

all taxes paid in...any remodeling and repairs as long as you have receipts...interest payments....moving expenses (i.e. truck rental, boxes, tapes etc)

Answer 7

interest paid