Home Mortgage Closing Costs
New Home Owner – What can I deduct from my taxes?
I just bought a house this August, what associated expenses and taxes can I deduct? Mortgage fees, closing costs?
Property taxes? Home Improvement $$?
Also, this will be the first time we’ve itemized, up until now we haven’t had a reason to. Can we deduct medical expenses (co-pays, deductibles) and is there a minimum before you can do so? I’d bet we’ve spent at least $1K this year.
Married, with a child who is in daycare…..
So she is deductible plus a credit for her daycare expense
The first thing you need to do is apply for a homestead exemption to lower those taxes.
You don’t say what state you live in. You can certainly deduct property taxes, mortgage interest, and certain closing costs on your Federal return. You cannot deduct home improvements as that is considered a capital expense.
You can deduct medical expenses only when they exceed a certain percent of your income. I think it was 7.5% last year so it takes some really hefty expenses to pay off. Hard to do if you have insurance. A portion of the insurance costs is deductible subject to that income percentage.