what can i deduct in taxes since we bought a house this year?

Answer 1

Be forewarned: Buying a house may not be the huge tax benefit that the real estate agent told you, especially in the first year.

That being said, the following items are "itemized deductions":

1) Medical Expenses (in excess of 7.5% of your income0
2) State Income Taxes
3) Real Estate Taxes
4) Personal Property Taxes
5) Mortgage Interest
6) Points paid at closing on the purchase
7) Charitable Contributions
8) Unreimbursed work expenses (in excess of 2% of your income)

Answer 2

You can deduct
1) The interest paid on the mortgage
2) A portion of the points (if you paid any) to finance the home
3) The property taxes paid on your home (be sure to look at the settlement statement from the escrow as you may have paid taxes during closing - these will not appear on your statement from the mortgage company.)
4) If you purchased the home as part of a move for a change in employment and the move qualifies (normal 50 miles) you can also deduct the moving expenses and cost related to searching for the home.

You accountant will be able to help you sort these items out or use Turbo Tax to file you retire. It will ask you questions to get the deductions.

Answer 3

If your total itemized deductions are more than your standard deduction would be, for the house you can deduct interest, points and real estate taxes. Wayne is right though - the tax savings probably won't be huge.

Answer 4

in case you first contributed to it the IRA this could, you are able to no longer have contributed extra desirable than $5000 to it ($6000 if age 50 or over). so which you're actually not likely to have extra desirable than $10,000 benefit till you're an particularly solid investor. one thank you to preserve this is to withdraw the contribution and effective aspects from it formerly April fifteenth next 365 days and recharacterize it like the contribution in no way occurred. you may nonetheless owe capital effective aspects tax on the ease (considering final could). this may well be the popular approach if the multiple benefit grow to be from "qualified" dividends, considering those are taxed at a less costly fee than short term benefit. Or in case you think approximately it a non-deductible contribution this 365 days and withdraw it later next 365 days and use it on your 1st homestead (as defined in IRS booklet 590), you may pay regularly occurring income tax on the ease, yet no 10% penalty on as much as $10,000 of benefit.