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Early tax question! Buying a house...

C

cpals

Diamond Member
So do I have the first tax question of the year?

I signed a contract to build a house that is schedule to be done in April/May of 2007. I have given the builder $2500 for downpayment and nothing else is required until the house is built and I start paying the mortgage.

Can I put any of this on my taxes or would it even do anything? I'm single, still live at home, car is paid off and make a decent income.

Thanks.
 
unless you can show interest and enough deductions in 2006 to long file, I doubt that seriously. Next years is a different story. Keep and categorize all your reciepts, you will have plenty of deduction to long file.
 
You probably wont be able to deduct anything this year. Tax related deducts are the interest you pay a mortgage company and you have the option to file long form itemizing deducts or taking the standard deduction and filing the short form.

Depending on your situation you may or may not have a tax benefit.
 
Originally posted by: skyking
unless you can show interest and enough deductions in 2006 to long file, I doubt that seriously. Next years is a different story. Keep and categorize all your reciepts, you will have plenty of deduction to long file.
Click to expand...

What types of things can I deduct related to the house? I will be buying all new things (furniture, appliances, etc)

Thanks!
 
Nope, you cannot deduct that on your taxes.

You can deduct home mortgage interest, points paid on the loan and property taxes...that's pretty much it (I'm assuming this will be your primary residence and not investment property).
 
Originally posted by: JulesMaximus
You can deduct home mortgage interest, points paid on the loan and property taxes...that's pretty much it (I'm assuming this will be your primary residence and not investment property).
Click to expand...

This is the answer you are seeking.

 
The deductions are for your residence that you own and you haven't even bought it yet. No deductions apply until the deal is completed.

Your payment will be included at the closing on the HUD summary for whatever tax purposes you can apply them to at that time.

For your residence; property taxes, interest paid, and some closing costs are all that's deductable.


Jim

 
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