09 Jun
Tax deduction
What can be claimed as a tax deduction when you purchase a house?
I often get this kind of question. Actually, it should be asked to a local CPA or whoever takes care for your taxes. You are encouraged to follow up with a professional tax advisor because I’m not qualified or authorized to give advice in the areas of legal matters and tax matters.
- To keep things short, as long as you itemize deductions, own and occupy the home, you can deduct both property taxes paid on the home and interest paid on your mortgage. You are allowed to deduct the points and prepaid interest you make during the actual purchase, no matter if you pay them or the seller pays them on your behalf.
- There exist some limits and restrictions which do not affect most people, but this is another reason you should see a tax professional regarding this question.