We are buying a house next month? What can we deduct on the taxes we'll file next year?

Question

We are buying a house next month? What can we deduct on the taxes we'll file next year?

Answer 1

wayne is correct above - except you can only deduct the points if you paid them - not if you roll them into the loan

I also am not sure of the PMI

I also agree it is not the tax windfall some would have you believe

If you can buy early in the year so you have captured as much of the tax deduction in the year as possible

Answer 2

Interest and property taxes, if you itemize.

Answer 3

JUST THE INTEREST ON YOUR MORTGAGE AND SOME STATES ALLOW FOR REMODELING.

Answer 4

Yeah...thats what i've been saying for years...never buy a house on credit so you can deduct the interest on your taxes.

you are basically losing more money this way.  you pay $10,000 to $20,000 in interest to the bank just to save $2,000 to $4,000 in taxes....the net effect is a LOSS!

buy the house becaue you want it, need it, or want to play the investment game.....not to save on taxes.

Answer 5

Interest, Points, Property Taxes and PMI (if any)

Buying a house is a great idea but it is not the HUGE tax break that some people (real estate agents and mortgage brokers) make it out to be especially in the year of purchase.