What is tax deductible when buying a home?

Question

I’m looking at buying a home as primary residence. What portion of the down payment or cash to close is tax deductible? Can I expect a decent tax return next year after buying a home as my primary residence putting 20% down conventional loan.

Basit Siddiqi · Answer

The Mortgage Interest, points and real estate taxes paid may be eligible schedule A itemized deductions.

You may also want to see if you qualify for any tax credits by making your house energy efficient.

Bill B. · Answer

The downpayment isn’t an expense, not deductible. Only money you spend. (Think mostly appraisal, underwriting, inspection, prowprty taxes and interest.)

With the new standard deductions almost everyone use that and you won’t bother adding up these expenses. If you’re single and your loan is well above the average and the interest rate is high, you might itemize next year when you have a full year’s interest and property taxes. Getting to itemize isn’t a good thing in regards to your primary home. If you’re married You have to have more than $27,700 in expenses before you save 20-40% of dollar 1.

What is tax deductible when buying a home?

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