Purchasing a home can provide great tax savings as a rule, however in the first year, depending on when you purchased the home the benefit isn't as good as a full year of expenses. Generally, a full year may bring the results you are looking for.
The closing costs associated with buying a home are added to the cost basis to reduce gain at a future sale down the road. Examples:
- Title charges,
- recording fees,
- transfer tax,
- AND real estate commissions.
- Points paid on the buyer’s behalf
Mortgage interest and property taxes paid are deductible as well as points, also known as loan origination fees. The property taxes on the settlement statement as well as any additional property tax actually paid after settlement (do not include funds placed in escrow).
In 2018, the standard deductions do change and are significantly increased so either way, you should have a reduced taxable income creating a lower tax and higher refund.
For more information about the coming changes click this hyperlink: TurboTax
Article: Tax Reform Legislation
