How will buying a house this year help me in terms of tax return?
How will buying a house this year help me in terms of tax return?
It's our first house. We are filing jointly and the mortgage is in my name only, if that matters. Also, what documents do I need to provide to the tax preparer in regards to the house (usually I just show up with the W-2). Thanks!
Just to clarify. We bought the house in 2007.
We closed 3/30/07. Did an 80/15 loan with 5% down, no PMI or points.
Answers:
wartz: Take in your Form 1098 and escrow closing statement from when you bought the house. Also take documentation for charitable contributions and any other types of taxes paid.
2008-01-24 09:51:01
2008-01-24 09:51:01
chatsplas@sbcglobal.net: When in 2007? Your first year of home ownership you may not qualify for the deductions available on Schedule A. It's the mortgage interest and real estate taxes which push you over the standard deduction, and you didn't pay any taxes this year (seller did) and you don't have a full year of interest. Take your HUD-1/ RESPA, 1099 mortgage statement along with all "normal" tax docs to preparer. Take a look at Schedule A and see if you have any other deductions, which previously you weren't able to take.
2008-01-24 09:53:39
2008-01-24 09:53:39
ToYsTeMpTer: you may be able to itemize this year on a sch A
as long as you exceed the 10700 standard deduction.
you'll need to know
taxes you paid
interest you paid
pmi
points
you should receive something from the lending institution that you'll need... i was able to download mine online from the bank its self
call your tax preparer and let them know of your situation and they should be able to provide you with a detailed list of things to bring with you..
congrats on the new home
2008-01-24 09:53:43
2008-01-24 09:53:43
Chosen Answer
jwishz: Give the tax preparer the following documents: The settlement sheet from your home purchase. You probably prepaid mortgage interest (possibly mortgage points) and taxes which are deductible. Also, each year you will receive a 1099 from your mortgage company which will include the amount you paid for mortgage interest and property tax, assuming property tax payments are included in your payment. If you pay property tax directly, forward a copy of your check payable to the taxing authority. These documents are in addition to your W-2. Your preparer should also go through a checklist with you to understand your unique situation. Additional documentation may be required.
2008-01-24 09:54:22
jwishz: Give the tax preparer the following documents: The settlement sheet from your home purchase. You probably prepaid mortgage interest (possibly mortgage points) and taxes which are deductible. Also, each year you will receive a 1099 from your mortgage company which will include the amount you paid for mortgage interest and property tax, assuming property tax payments are included in your payment. If you pay property tax directly, forward a copy of your check payable to the taxing authority. These documents are in addition to your W-2. Your preparer should also go through a checklist with you to understand your unique situation. Additional documentation may be required.
2008-01-24 09:54:22
SANJEEV K: More than Tax Return, It would help you in Creating an Equity in your home. Houses are going very cheap in US due to recession and slump in Housing sector.
I think you can also write off property taxes paid against your Income in US
2008-01-24 10:37:33
2008-01-24 10:37:33