The Tax Man Cometh- Home Purchase Deductions
If you purchased a home this year, this is a reminder to get your HUD settlement sheet out and give to your accountant. 
There are several items that may be tax deductible and should not be overlooked. If you dont have your HUD settlement sheet. Try contacting your agent, your banker or the closing company to put your hands on one. The items that may be tax deductible are:
Points- Points that you pay to pay down your interest rate on your mortgage are tax deductible. Points that you pay as a service fee are not. When its time to get a mortgage you need to do an analysis of what is right for you. Paying down your interest rate only makes sense if you are staying in your house long term. Do the math see where the break even point is on paying points towards your mortgage
Pro Rated Mortgage Interest- Depending on when you close during the month your pre-paid interest can be significant or hardly anything. If you close your mortgage at the beginning of the month you would have paid 30/31 days worth of interest, if you close on the last day of the month, you would have only paid one days interest.
Pro-rated Real Estate Taxes- You will find that many times the seller has paid future real estate taxes. You will be charged the pro-rated amount of the real estate taxes.
____________________________________________________________________ This post “This Post the Tax Man Cometh was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422. I pride myself in the quality of my work helping buyers and sellers make dreams come true.
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