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Is there a way to deduct costs for a new house if I don't have a 1098 form? I bought it in Nov 2019, the first payment was in Jan 2020, so I didn't get a 1098. Thanks.

Forum|Forum|5 years ago
July 13, 2020
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Best answer by Texas Roger

There may be some costs from your settlement statement you got at closing that are deductible.

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.

T

Texas RogerAnswer

Employee

There may be some costs from your settlement statement you got at closing that are deductible.

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.

K

KevinF418

Could you please share where and how to enter this information. (what form)

thank you,

KF

KrisD15

You can ask your real estate agent or the person you closed with at the Title Company to go over the HUD statement with you.

Home Mortgage Interest is normally paid the month AFTER, so if you close in November, let's say November 15th, you will be charged the interest from the 15th through the 30th of November, but not again until January (for the interest of December).

You might also pay "points" which could be deducted. Points would also be listed on your HUD closing statement.

If you closed in November 2022, you most likely will NOT get a 1098 from the Lender.

Additionally, Taxpayer have the option of choosing the Standard Deduction OR Itemizing Deductions on Schedule A.

Home Mortgage Interest only matters if you have enough deductions, such as Mortgage Interest, Medical Expenses and more.

Standard or Itemized,which is better?

Info about Points

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