Deductions & credits

The purchase of a personal residence, not used as a rental or in a business, is not reported on a tax return.  Only when the personal residence is sold would that sale have to be reported on a tax return, but only if you did not live in and own the home for two years in the five year period prior to the date of sale or your gain on the sale was greater than the exclusion amount for your filing status or you received a Form 1099-S for the sale.

 

Mortgage interest paid, points paid on the loan and the property taxes paid are reported on a Schedule A as itemized deductions.  However, your total itemized deductions must be greater than the Standard Deduction for your filing status to have any tax benefit.