I just bought a condo in 2019

[savedmike]

I just bought a condo in 2019, what can I claim? I used my  401k for partial deposit and used savings for the rest. What can I use toward my 2019 taxes? Can I use any of it as a write-off?

[DoninGA]

None of the funds you used to purchase a personal residence are deductible on a tax return.  

You can deduct as itemized deductions on Schedule A the mortgage loan interest paid during the year, any points paid on the loan for the personal residence and any property taxes paid for the residence.

However, the total of all itemized deductions on Schedule A must be greater than the Standard Deduction for your filing status to have any tax benefit.

Standard deductions for 2019

• Single - $12,200 add $1,650 if age 65 or older
• Married Filing Separately - $12,200 add $1,300 if age 65 or older
• Married Filing Jointly - $24,400 add $1,300 for each spouse age 65 or older
• Head of Household - $18,350 add $1,650 if age 65 or older

[xmasbaby0 · Accepted solution]

If you were not 59 1/2 when you took money out of that 401k, you are going to owe the 10% early withdrawal penalty as well as ordinary income tax for the distribution. from that 401k.   Withdrawing money from a 401k to buy a house is not an exception to the early withdrawal penalty.  Sometimes people confuse that with the exception allowed for an early withdrawal from a traditional IRA to purchase a house.  

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. 

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher. and the $10,000 limit on state and local taxes was imposed.  Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.  

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2019.  You should have a 1098 from your mortgage lender that shows this information-- lenders issue these by the end of January.

[xmasbaby0 · Accepted solution]

Watch for the 1099R you will receive in January for the money you took from your retirement account.  You will need to enter it on your tax return.

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.