Buying a home in December will do little (or nothing) for your 2018 tax return. If you do not already have a deal ready to close, your chances of doing that by the end of December are slim. For 2019:
Home Ownership
There is not a first time home buyers credit on a Federal return. That ended in 2010. If your state has such as credit, you will be able to enter it when you prepare your state return.
Buying a home is not a guarantee of a big refund. Your deductions for homeownership combined with your other deductions (if any) must exceed your standard deduction to change your tax due or refund. If you purchased your home late in the year, you do not even have a full year of home ownership deductions.
Your closing costs on your new home are not deductible except for prepaid interest, prepaid property tax or loan origination fees. There are no deductions for appraisal, inspections, title searches, settlement fees. etc.
Your down payment is not deductible.
Your homeowners insurance for fire, hazard, flood, etc. is not deductible for your own home.
Home improvements, repairs, maintenance, etc. for your own home are not deductible.
Homeowners Association (HOA) fees for your own home are not deductible.
In late January or early February, homeowners who have mortgages receive a 1098 from their lender, showing how much mortgage interest, loan origination fees, and property tax was paid for the tax year. That is what you use on your tax return.
There is now a $10,000 limit on how much you can deduct for property tax, state and local taxes, and sales tax. (SALT) Many people will find that with these limits, they are unable to itemize on their tax returns, because even with these homeownership costs and mortgage interest, their itemized deductions may not exceed the standard deduction.
2018 Standard Deductions:
Single $12,000 (+ $1600 65 or older)
Married Filing Separately $12,000 (+ $1300 65 or older)
Married Filing Jointly $24,000 (+ $1300 each spouse 65 or older)
Head of Household $18,000 (+ $1600 65 or older)
Please read about the laws regarding mortgage interest, home equity loan, and SALT:
https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
