The actual
purchase is not reported on the tax return. And most closing costs are not tax deductible. However, there are certain items
that you can deduct on purchase of a home; all of them are located in the
Deductions & Credits section, Your Home category:
1. Mortgage interest paid: Federal Taxes>Deductions
&Credits> Your Home, select Mortgage Interest and Refinancing
2. Points: Federal Taxes>Deductions
&Credits> Your Home, select Mortgage Interest and Refinancing (be sure to select an option
that applies to you on the Tell Us More
about Your Loan screen)
3. Real Estate Taxes: Federal Taxes>Deductions &Credits> Your Home>Property Taxes
4. Mortgage Insurance: Federal
Taxes>Deductions &Credits> Your Home> Mortgage Insurance
You cannot deduct : settlement
fees, such as appraisal fees, attorney fees, inspection costs and legal and
recording fees.
Please
refer to Buying
Your First Home link for details.
