Get your taxes done using TurboTax

There are some expenses you can list as itemized deductions.  They may not change your tax at all, depending on the total amount of your other itemized deductions.

 

1. Mortgage interest.  Mortgage interest you paid during 2022 is deductible.  You will get a 1098 statement from your lender; they must be mailed by January 31, or it may be available to download from your lender.

 

2. Daily interest.  You probably paid interest from your closing date to the end of the month, this would be on your closing statement but might not be included in the interest reported on your 1098.  You can deduct this interest even if it is not included in the 1098.

 

3. Property taxes.  You deduct taxes that apply to your period of ownership even if you did not pay them directly to the town or county.  For example, in many locations, taxes are due Feb 15 and cover Jan 1-Dec 31.  That means that if you buy a house in October, you don't pay anything to the town because the seller paid a full year of taxes in February.  But, you would have paid the seller a credit for the property taxes allocated to the days that you will own the home (you are reimbursing them for taxes they paid in advance.). Those taxes are deductible as if you paid them directly to the county.

 

4. Points.  Points are a fee you pay to get a lower interest rate.  Not all application fees are points.  If you paid points, they may be fully deductible in the year you closed, or you can deduct them spread out over the life of the loan.  The rules are described here, https://www.irs.gov/forms-pubs/about-publication-936

 

5. Closing costs.  Closing costs are not tax deductible (except for the items I already mentioned) but some closing costs are added to the cost of your home and may reduce your capital gains tax when you sell, so you should document them now.  See IRS Publication 523 for a list of closing costs that can be added to the cost of the home when you sell. https://www.irs.gov/forms-pubs/about-publication-523