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December 22, 2024
Question

Can I Claim this on my taxes I'm buying a home on monthly payments no loan plus iv done over $4000 In repairs can i Claim this If so how and where

  • December 22, 2024
  • 2 replies
  • 0 views
I'm buying a home I pay $650 a month $250 is towards buying the home and $400 is lot rent plus I have spent $4000 In repairs all this is money out of my pocket I didn't get a home loan but I have papers providing proof of monthy payments on a contract so can I add this to my taxes to get a new home buyer credit are how and where would I add it

    2 replies

    DoninGA
    Employee
    December 22, 2024

    There is not a home buyer credit on a tax return.  Purchasing a personal primary residence is not reported on a tax return.

    If you have title to the home and have a mortgage, then the mortgage interest would be deductible as an itemized deduction.  And if you paid property taxes on the home that also would be deductible as an itemized deductions.

    Employee
    December 22, 2024

    Property taxes are only deductible if you are the person required to pay them.  If the home is in the name of the previous owner, and the previous owner is responsible for the taxes, you can't deduct them even if you pay them.

     

    Mortgage interest is deductible if the contract meets the definition of a mortgage.  That means a loan secured by the property, and "perfected" (which usually means it is registered as a lien against the property in the county clerk's office or wherever deeds are recorded.  You may need to see an attorney to determine if your contract constitutes a mortgage for tax purposes.

     

    The part of the payment that is not interest is never deductible, that's how you are buying the house.  Buying a property or investment is never deductible, and in fact, if you later sell for more than you paid, you usually owe capital gains tax.

     

    Repairs are never deductible, that's the responsibility of any property owner to keep their property in good condition.

     

    Improvements are not deductible, but they count as part of your cost, and may reduce any capital gains when you sell.  An improvements is a permanent change to the property that adds value, increases the useful life of the property, or adapts it to a new use.  For example, painting is a repair, but replacing carpeting in the whole house will generally be an improvement.