What costs are Tax Deductible?

Question

Hey guys,

I have been reading and we are buying our first house in the next month and want to know exactly what you know is tax deductible. I have read that interest is, as well as property taxes. Is there any closing costs or fees that are tax deductible that I don't know about? I have done some reading but they are kind of a case by case basis it seems.

Joseph Gozlan · Answer

There are so many variable to answer that question. as Colton S. said, best way to get an accurate answer would be to talk to a CPA about YOUR specific situation.

Some things will vary by state, the entity that you used to purchase the property, if you could be considered a RE professional etc...

Here are some things that COULD POTENTIALLY be deducted (again, talk to a CPA):

• Car millage
• Renovations (again, not all things)
• professional fees (i.e. for realtors associations)
• permits
• home office
• inspection fees

The challenge is that you can claim anything you want but at the end of the day you will have to face that IRS auditor and explain why a $3000 watch is a valid RE expense and when he doesn't buy it face the consequences...

This is why it's better to consult a CPA ahead of time to get your tax planning optimized.