the downpayment is part of the sales price of the home… it is not a deduction…
home owners insurance is simply a bill just like utilities and not a deduction…
some closing costs like loan point, prepaid interest, and prepaid property taxes are tax deductible… but if it's not more than the standard deduction, it's not worth it for you to itemize…
Deduct in what way? Tax deduction? No. Your down payment is not lost money. It's now equity in the property. Some closing costs may be added to the cost basis of the property, to decrease any potential profit when you sell. Insurance is not tax deductible.
Property taxes and mortgage interest paid are deductible only if you itemize deductions on Schedule A and the total is greater than the standard deduction. For many filers, the standard deduction is greater and there is no benefit to deducting taxes and interest.
You would not be able to deduct insurance and the down payment you paid.
You are able to deduct all your closing cost, points and fees you paid during the sale transaction. Even though you have paid little interest and prorated taxes, you are able to deduct the taxes and interest you paid. You will be able to deduct this all on you current tax year.
If you are having a problem as to what items you paid are considered closing cost, you might want to check with your accountant or a person or company that does taxes and understand the legal deductions in the purchase of a house.
You might google this information, how ever there might still be questions as to if you are able to consider some cost as closing cost.
I hope this has been of some benefit to you, good luck.
LMAO, NO. You cannot deduct the cost! You can deduct the Interest, Points and RE Tax.
Not the down payment or insurance. SOME of the closing costs – interest, points, and property tax – but only if it totals enough for you to itemize.
Why should these be deducted…because you spent money???
If someone earning a million a year buys a new property every year for a million…should they pay $0 in taxes?
Yeah, you can deduct many closing costs, but not your home owners insurance or down payment. Talk to a CPA.
No. No…..and No.
None of those things are deductible.
No. Real estate taxes paid back to the seller is the only thing you can deduct. The mortgage interest and real estate taxes paid after closing will come on the 1098 from the mortgage company. If you paid PMI, that may be deductible as well.
No. Mortgage interest is deductible.