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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

542.0. "Things cliamed as tax deductions when buying house" by MSBCS::SHAH () Mon Aug 02 1993 14:17

    
    Does anyone have a list of things that one can claim it as tax
    dedeuctins when buying a house (specially, first time) ? Something
    similar to first job-search or relocation ? 
    
    It would be nice to know of the expenses one needs to keep track of
    come tax-time !!
    
    Thanks,
    /Alkesh
    (cross_posted in REAL_ESTATES)
T.RTitleUserPersonal
Name		DateLines
542.1Only Interest and TaxesSWLAVC::HOSSEINIMon Aug 02 1993 14:348
    When I did my taxes, the things that I was able to deduct were:
    Points (provided you paid it up front, ie, not included in your
    mortgage), Taxes (property taxes) and that's about it.  If you are
    purchasing a home to live in it then all you could duduct are ineterest
    and taxes.  If you are buying an investment property, that's a
    different ball game.
    
    Hossein
542.2Use a microscope on your "Consolidated Statement of Closing"ALFAXP::S_SOVEREIGNMon Aug 02 1993 17:0413
Take a careful look at this statement.  Look in the "Paid from Buyers Funds
at Closing" column.  Interest qualifies.  Taxes qualify, *including* stuff like
"County Mortgage Tax Stamps".  "Loan Origination Fees" usually qualify too, as
long as (1) you paid them, (2) they are determined as a percentage of the loan
amount, and (3) they are "customary" in your market.  (They are treated as
interest, just like "Points")

Things labelled as "fees" are no good to you this year.  BUT - keep track of the
total "Paid from Buyers...", less the amount you're able to deduct immediately.
This $total adds to your "basis" in the house, used later when you sell to
determine if you have a taxable gain.

SteveSov