How do I add the purchase of a home?

As buying a new home is not a reportable transaction per IRS, there is no a special section in the TurboTax online program to record the transaction.  However, you are allowed to claim the following deductions related to your home:

1.  Mortgage Interest Expense

2.  Real Estate Taxes

3.  Points

4.  Mortgage Insurance Payments ( if there is any)

At closing, you can deduct mortgage interest, points and property tax. All other expenses of closing are not deductible. Instead, you add them to the cost basis of your home to reduce the gain when you sell.  You are advised to save the closing statement until you eventually sell your home.

For more information, please see this TurboTax Guide to Home Ownership

IRS Pub. 530, Tax Information for Homeowners

http://www.irs.gov/pub/irs-pdf/p530.pdf

and IRS Pub. 523, Selling your home
http://www.irs.gov/pub/irs-pdf/p523.pdf