Did you know that 673,000 homes were sold last year? That means over a million people had a major life change that most likely affected their taxes. At SK CPAs, we see this all the time. If you are in this group, here are some tax tips you should know to put yourself in the best situation possible.
Tax Tips for Buying or Selling a House
- You may not have been able to itemize deductions in the past. You can now deduct the mortgage interest and real estate taxes on your primary residence on Schedule A, if this sounds scary, we can help with this.
- Points – did you pay points? They are deductible on a new home purchase or amortizable on a refinance with the same lender, fully deductible with a new lender.
- Is there anything on the Closing Disclosure that you need for my taxes? Partial mortgage interest, points, partial real estate payments. If the property is a rental there will be partial payments for HOA dues as well. Settlement charges need to be picked up on the rental as well.
Those are just a few things to make sure your accountant helps you with regarding having bought or sold a home this year, but there are many more. Every year we help our clients make sure they are covered for all of them! If you are currently looking for an accountant, we would love to talk to you!
Contact us and we can make your tax situation less taxing