Hello,
I am as of this month a new homeowner! Yay. I have a question, I know that at the end of the year you can write of the taxable interest you have paid that year (only some but not all). My question is can I write off the up front costs I paid to get the mortgage? I did 0% down and still had to put down about $2,000. Thanks.
2007-12-21 16:11:47 · 6 answers · asked by LVNeptune 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Also, I didn't want to get a CPA this year since my first payment isn't until Feb 1st of next year.
2007-12-21 16:19:56 · update #1
Since you are a new homeowner as of this month it's highly unlikely that you will receive any tax benefit from it for 2007 unless we're talking about a $1 million home or better with a mortgage to match.
Starting with the 2008 tax year (filed in 2009) you can take a deduction for the mortgage interest you paid plus any ad-valorem property taxes paid. If those plus any other itemized deductions that you claim exceed your standard deduction amount for your filing status you'll get some tax benefit for however much the total itemized deductions exceed your standard deduction amount.
There is one item that you paid this year that is deductible in future years. Since you most likely can't claim the mortgage interest for 2007, you CAN apportion the points you paid over the live of the loan. Say you paid $1,500 in points and have a 30 year mortgage. You can deduct 1/30 of that $1,500 (it's only $50, but better than nothing) each year that you are paying on the mortgage. If you sell the home before you pay it off, any remaining balance can be claimed in the year of the sale as part of your mortgage interest deduction for that year.
2007-12-22 06:05:10 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
All of your interest is deductible if you itemize . Some of the acquisition fees are deductible such as points or interest buy downs that are connected to the loan, but may have to be prorated over more than one year .
The appraisal , termite inspection , and credit reports are not .
You should invest in research time or pay someone that knows to do your taxes for you.
2007-12-21 16:41:11 · answer #2 · answered by Sin nombre 6 · 1⤊ 0⤋
I am self-employed and make quarterly payments, the last of which is due January 15, 2016. Is it beneficial to pay those state or federal taxes before the end of the year ?
2015-12-31 04:38:59 · answer #3 · answered by Father_Judge 1 · 0⤊ 0⤋
Get IRS publication 530, first time home owner's.
It will help you figure out which items you paid for are part of your basis.
Chances are, you won't do you taxes any differently for 2007--having bought in December, you just won't have enough to itemize.
2007-12-21 16:20:30 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Sorry but only the interest you pay is deductible as far as I know. Check irs.gov to be sure. I use Turbotax to do my taxes and it asks questions about to calculate your taxes. There are other online tax services that do the same. Also next year be sure to save your receipts for any repairs you do on the house as that is also deductible.
2007-12-21 16:20:50 · answer #5 · answered by a_mom 4 · 0⤊ 1⤋
Do yourself a favor and hire a good accountant. They aren't that expensive and as a new homeowner you'll find it's money well spent.
2007-12-21 16:17:03 · answer #6 · answered by Mariana Straits 7 · 0⤊ 1⤋
Congratulations! Sorry, I don't know.
2007-12-21 16:14:54 · answer #7 · answered by jazminqua 2 · 0⤊ 2⤋