Once you officially become a property owner, you should keep good records for tax purposes. As we discussed previously, owning a home is one of the last middle-class tax shelters. Your closing documents contain valuable tax deductions. Make sure you save an extra copy of your closing statement for your tax accountant. Here's a quick summary of what's deductible and what's not:
Deductible
real estate taxes paid by you at closing
interest expense paid by you at closing
points paid (subject to some limitations)
Non-Deductible
homeowner's insurance premiums*
water and sewer charges*
prorated oil or other utilities*
other expenses of a personal nature*
Other items on your statement may add to the tax basis of your home. Some of these items are:
brokers' commissions
attorneys' fees
recording fees
title search and survey
* These items may be deductible if you are purchasing investment property. Contact your tax professional for details.
Share Article:
FINRA SIPC Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank Deposit
This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. registered representatives. Infinex Investments Inc. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all the investments and services mentioned are available in every state.