Do you claim a new house purchase on federal income tax? (2015, rent) - Houston - Texas (TX) - City-Data Forum

Texas6023 · 02-24-2016, 12:17 PM

Do you claim a new house purchase on federal income tax? Or is it just not worth the trouble to mess with?
Would I have to itemize to benefit from the purchase? It was a quarter million purchase but haven't paid much interest as I just purchased it at the end of the year. Appreciate any advice,..

trbstang · 02-24-2016, 01:39 PM

If you purchased it towards the end of the year it might not benefit you to itemize, you will just have to look at the numbers. You can ask your accountant or read up the IRS rules on the particulars relating to the actual purchase expenses, but generally any points paid to lower the interest rate can be deducted in the year paid on a new home purchase, so that can be included in the deductions for 2015. But even with that, it still might not help on your 2015 taxes if you are married. Single, it might. I don't recall about the property taxes if you can deduct the full amount or just your portion for last year since it was all paid by you (or for you) in December most likely.

Next year you should be able to itemize your deductions since you will have a full year of interest and property taxes paid. For example, I pay about $10,000 in interest a year, and $5,600 in property taxes. When I include the other deductions I can take, my itemized deductions run about $17,000 to $18,000. This year I paid my property taxes for 2014 in January 2015 and also paid my 2015 taxes in December 2015, so I will have about $23,000 in itemized deductions, much more than the $12,600 married standard deduction.

Good luck on it!

houstmom · 02-24-2016, 01:43 PM

Yes, you would have to itemize your deductions to benefit from the purchase. You can deduct items such as the mortgage interest you paid for the year, property taxes paid, and a few other things like points and mortgage insurance. If these amounts, including anything else you are itemizing, do not exceed your standard deduction, then you take the standard deduction. Your itemized deductions may be phased out depending on your income.

You can fill out an itemized deduction worksheet to see what to expect. Here is one for 2015: https://www.irs.gov/pub/irs-pdf/f1040sa.pdf. You can do a quick google search to find out what your standard deduction amount is.

Texas6023 · 02-29-2016, 02:37 PM

Ok. Thanks folks. So you can use homeowners and windstorm insurance premium towards itemizing? I never have used that towards itemizing..

So I can use a surgery bill towards itemizing? I had to pay all out of pocket.
And what about building supplies? Can any of that actually be claimed or you have to be some type of business?

What about money paid towards rent? Can that be claimed?

I'll be using turbo tax but always worried if I make a mistake on claiming that the law dogs will come down on me..

houstmom · 02-29-2016, 02:46 PM

Turbo Tax guides you through the itemized deductions. You enter them in and then it calculates whether you should take the standard deduction or itemize. Your rent cannot be claimed (if its not related to a business). Turbo Tax does not ask you about your rent in the deductions section so you wouldn't enter that in. The same goes for building supplies not related to a business. Turbo tax will ask you about your medical expenses that were not paid out by insurance in the deductions section. You will enter it into Trbo Tax.

Maybe you should use a CPA to do your taxes.

chris_ut · 02-29-2016, 08:10 PM

For medical the cost has to be higher than a certain % of your income to take a deduction. It used to be I think 7% so say you made $100,000 if you had $10,000 in medical bills you could take $3,000 as a deduction (10k-7% of 100k). Not sure current rules as haven't had to deal with that for many years.

huma281 · 02-29-2016, 08:23 PM

Sounds like you need a CPA sir.

Trying to milk out nonexistent deductions could get you into more trouble than the few dollars you'll be saving.

Texas6023 · 02-29-2016, 09:36 PM

I'll get right on that huma...

Just because I ask a question you assume I'm screwing the system? I'm asking because I'm making sure I am not leaving any of my credits out. You don't have to be a rocket scientist to be able to do your own taxes, you just have to have some common sense.

Thanks Chris. I think it was 10% last year but didn't have to worry about that until this year.

Lowexpectations · 02-29-2016, 09:48 PM

Quote:

Originally Posted by Texas6023

I'll get right on that huma...

Just because I ask a question you assume I'm screwing the system? I'm asking because I'm making sure I am not leaving any of my credits out. You don't have to be a rocket scientist to be able to do your own taxes, you just have to have some common sense.

Thanks Chris. I think it was 10% last year but didn't have to worry about that until this year.

Medical expenses are deductible if you itemize and they exceed 10% of your agi, and it's only deductible for the dollars above 10% of AGI unless you are 65 and then it 7.5% of agi

huma281 · 02-29-2016, 09:58 PM

Quote:

Originally Posted by Texas6023

Just because I ask a question you assume I'm screwing the system? I'm asking because I'm making sure I am not leaving any of my credits out. You don't have to be a rocket scientist to be able to do your own taxes, you just have to have some common sense.

Now you're putting words in my mouth.

I'm sure a simple google search will tell you what is eligible for deductions and what isn't. You're right that it doesn't take a rocket scientist, but if you have a lot to report, it's better to leave it to the professionals. If you're one of those guys who want to diy and learn the process, take a class on it? I have and I'm still confused on some parts because the laws changes slightly every year.