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Bought house in 2000: Tax tips?

Fausto

Elite Member
Nov 29, 2000
26,521
2
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Looking at sitting down soon to feed the vultures. Any homeowners out there have the skinny on all the deductions I can now claim on Schedule A? I know I can deduct the mortgage interest, state/local taxes, student loan interest, and property taxes. What else? Any other pointers? I'd like to take full advantage of all the breaks I get having purchased a home.

Thanks,
Fausto
 

kranky

Elite Member
Oct 9, 1999
20,999
109
106
If you paid points on your mortgage, you might be able to deduct those as prepaid mortgage interest. It's been a while since I researched that so please look into it.

While not related to buying a house, charitable contributions are also deductible on Schedule A.
 

Cerebus451

Golden Member
Nov 30, 2000
1,425
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The list of deductions is the same as before you had the home. The main difference is that mortgage interest and real estate taxes will easily carry you over the standard deduction, and make it worth your while to itemize your deductions.

I deduct state/local income taxes, mortgage interest, real estate taxes, charitable contributions, and that's about it. If you paid points on your mortgage, then those are deductible for last year's tax year as well, but they are a one time deduction that takes place the year of your home purchase (they can push you over the top of the standard deduction if you bought late in the year and don't have a lot of mortgage interest). As a single filer, I claim 2 exemptions on my withholdings, and still am getting over $1400 back this year as a refund.

There are all kinds of other things that get deducted on Schedule A. There are medical expenses, but you have to exceed 7.5% (I think?) of your gross income in order to list those. If you have personal property taxes where you live, those get deducted as well. I use TaxCut from Kiplinger to file my taxes, and they cover quite a few bases. I've never played around on the fringe (like trying to deduct cost of computer or tax preparation software) as I feel I would only squeeze an extra $10-$20 bucks out, and it's just not worth it. You can talk to a professional tax preparer and they can give more detailed information if you really want to squeeze every possible dollar out of Uncle Sammy.
 

Total Refected Power

Diamond Member
Oct 13, 1999
3,899
0
0
Everything said above is really good. It is doubtful you took a home-equity loan so soon but for future reference that interest is deductible too.
 

Fausto

Elite Member
Nov 29, 2000
26,521
2
0
Thanks for the input all. I hate forking over any more to Unca Sammy than I have to. A refund might take some of the sting out of my $400 natural gas bill last month. I do so love deregulation...

Fausto
 

jjm

Golden Member
Oct 9, 1999
1,505
0
0
Get a basic tax program, since they are so cheap. You do not need the deluxe versions. The "interview" choice for completing the return will help identify all the typical deductions you should try to take.
 

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