Question

Selling Primary Residence and purchasing new primary residence

Forum|Forum|5 years ago
March 21, 2021
1 reply
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I purchased my primary residence June of 2016. We sold the home March of 2020. The 1098 form does not show the taxes paid at the time of closing and does not show the final principle of $0.00. How can I get credit for the taxes paid at the closing table with the turbo tax software? Also, I purchased my new home March of 2020. What all can I include as points?

TurboTax Home & Biz Windows

M

Mike9241

real estate tax deduction for 2020 is taxes paid withdrawn from escrow + charges on the closing statement for unpaid taxes or less credit for taxes paid in advance. you'll need to enter this when you get to the tax section of itemized deductions. points paid (not all closing costs) for the new home can be deducted in 2020 this is in the mortgage interest section of itemized deductions. if on the closing statement for the new home there is a charge for 2020 taxes that's an additional real estate tax deduction. if it's a credit then in the year you make payment your deduction is the amount paid reduced by the credit. note that once schedule A taxes go over $10,000 you get no further benefit.