There are several deductions (itemized deductions on Schedule A, Form 1040) to which you may be entitled due to the purchase of a primary residence. However, due to the fact that you did not purchase until December 27 of 2017, the amounts may be negligible for the 2017 tax year. These deductions are listed as follows:
1. Home mortgage interest: The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home. However, due to the fact that you did not purchase until December 27, this amount will likely be negligible for 2017.
2. Closing cost deductions: The first year you buy your home you may be able to claim the points (also called origination fees) on your loan. Because origination fees of 1 percent or more are common, the savings are considerable.
3. Real estate taxes: Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes for the tax year 2017.
4. Home equity loan interest: In addition to your mortgage interest, you may be able to deduct the interest you pay on a home equity loan (or line of credit).
5. Mortgage Insurance Premiums: You may be able to take an itemized deduction for premiums
you pay or accrue for qualified
mortgage insurance in connection with home
acquisition debt on your qualified home.
6. Points Paid and Sales Tax: You may be able to deduct points paid in the year of acquisition and sales tax paid if certain tests are met
7. Deduction for Business Use of Your Home: You may be able to deduct expenses for the business use of your home.
For more information, refer to IRS Publication 530 - "Tax Information for Homeowners" at the following link: https://www.irs.gov/pub/irs-pdf/p530.pdf
For more information, refer to IRS Publication 587 - "Business Use of Your Home" at the following linkihttps://www.irs.gov/publications/p587
