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This is my first time buying a house.I know tax season is around the corner and I have questions that need to be answered.What would I go under to file my home on my taxes? will it say something like”do you buy your home?or wil it be under something Else?Someone told me that I can deduct mortgage interest paid and property taxes can i just get that information off my monthly mortgage statement?About how much money will that bring?any answers will be helpful. I always file my own taxes and it turn off great now that I have to put y home on my taxes i need these questions answered.

  1. Reply
    Bash Limpbutt's Oozing Cyst©
    November 10, 2011 at 3:20 pm

    Did you buy your home in 2009? Or are you in the process of buying one now?

    If you have not bought yet, the only thing that you can potentially claim on your 2009 return will be the First Time Home Buyer’s Credit if you close by April 30, 2010 or are under contract on April 30, 2010 and close by June 30, 2010. Even if you buy in 2010, you can claim that on your 2009 return.

    If you bought in 2009, you can claim that credit AND possibly deduct the mortgage interest and property taxes that you paid. You’ll get a statement from your mortgage lender that shows how much of each you paid in 2009. The interest actually paid plus the property taxes that were actually paid on your behalf are deductible.

    Whether or not that will get you any tax savings is unknown. You need enough itemized deductions to exceed your standard deduction to get any benefit. The SD for a single taxpayer is $ 5,700 for 2009. It’s not unusual to not have enough deductions in the year of purchase to get it over the SD amount unless you bought very early in the year. And with mortgage rates being what they are right now, it’s very possible that you’ll NEVER have enough in itemized deductions to make it worthwhile. That’s particularly true if you are married and file a joint return since the SD there is $ 11,400.

  2. Reply
    November 10, 2011 at 3:55 pm

    This question is actually more complicated than you realize. When you own a home that is your primary residence, you can deduct certain expenses on your income taxes. You deduct them by entering the amounts on Schedule A – Itemized Deductions. The deductions include:

    Mortgage Interest
    Property Taxes

    Note: If you don’t have “itemized deductions,” you can still take the “standard deduction,” so this is only a benefit to the extent that your “itemized deductions” are greater than your standard deduction.

    In addition, if you are a first time homebuyer, you buy by April 30, 2010 and close on your house by June 30, 2010, you may be entitled to a one-time $ 8,000 tax credit. You claim this credit by filing Form 5405.

    Since there is a lot of money involved, I recommend that you have a tax professional at least prepare your 2010 tax return. Then, if you feel comfortable, you can prepare future tax returns yourself using that one as a basis. Also, check out the IRS publication I listed below. Good luck

    Larry (CPA)

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