Good ‘ol tax season is upon us. If you’ve purchased a new home this past year, you’re probably wondering which tax deductions you can make as a home buyer.
If you’re just getting started on your home buying process, be sure you know about all of the expenses to expect as a new homeowner. Out of those expenses, you should know which ones you can include on your taxes and which are not deductible. Tax deductions for home buyers can help take some pressure off of those initial expenses.
Unfortunately, you can’t write-off all of your closing costs and expenses. However there are a few deductions you should take advantage of.
The tax deductions you can make on your new home include:
- Sales tax issued at closing
- Real estate taxes charged to you when you closed
- Mortgage interest paid when cost was settled
- Real estate taxes that were paid for by the mortgage lender
- The interest you paid at the house purchase
- Loan origination fees (a.k.a. “points”)
These tax deductions will be filled out on the 1040 tax form that you (or your tax person) will complete when filing. Bring your closing disclosure statement along to double check all expenses paid for any potential tax write-offs.
If you’re just starting in your home buying process, learn more about the process with our Free Buyer’s Guide!
So, if you’re looking to sell your home (which comes with a handful more tax deduction options!) or if you’re ready to start the search for your dream home, contact Eric to get started!!