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June 1, 2019
Question

I need some help. I just bough a house and I was wanting to put it on my taxes

  • June 1, 2019
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Employee
June 1, 2019

By just bought, do you mean you closed on the house before the end of 2016?  

If you have not made any payments to the mortgage holder other than at closing, you may not receive a 1098 so your only deductions may be closing expenses.

Most expenses at closing on the purchase or refinance of a home are added to the cost of a home and are not deductible but are added to the cost basis of the home.  There are a few exceptions - the following would be deductible:

1. Interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment.) This is sometimes included in the 1098 from the new lender.

2. Real estate taxes charged to you and not reimbursed by seller

3. Points or origination fees.  On a refinance they need to be amortized over the life of the loan unless the points were used to improve your main home.

4. Private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization.

Title fees, real estate commissions, documentary stamps, credit report costs, costs of an abstract, transfer taxes, attorney fees, etc. are not deductible, but are added to the cost of the property.

House ownership deductions are itemized deductions. You are not likely to get a tax break from them on your 2016 tax return with few if any months of payments. The total of all your itemized deductions must be more than your standard deduction for you to get a tax break.