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harga001
New Member

Bought a cabin in WI, how is that addressed at the Federal and State level. Have Form 5498, what is that for?

 
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jerry2000
Alumni

Bought a cabin in WI, how is that addressed at the Federal and State level. Have Form 5498, what is that for?

The purchase of a new personal residence (primary or secondary) is not a reportable event. You can deduct mortgage interest, points, and real estate property tax paid at closing. You report those expenses along with other mortgage interest/property taxes paid in the year at Federal Taxes (or Personal if using Home and Business) Deductions And Credits choose I'll choose what I work on, if asked OR Jump to Full List My Home All other costs paid at closing, including transfer taxes, "stamps", escrow fees, etc., are NOT deductible from current income, instead you add them to the cost basis of your home and you will get the benefit when you sell. You enter that only on your Federal return. Anything related to your state return is transferred by Turbotax automatically.

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3 Replies
jerry2000
Alumni

Bought a cabin in WI, how is that addressed at the Federal and State level. Have Form 5498, what is that for?

well, what is the cabin for? is it a second home? is it a rental? or what.  You get a 5498 for a transaction on a retirement account, why did you get a 5498 for buying a cabin? That makes no sense at all.
harga001
New Member

Bought a cabin in WI, how is that addressed at the Federal and State level. Have Form 5498, what is that for?

Two separate questions. The 5498 question is answered.  The cabin is a second home for intermittent use. Not a rental.  Thanks.
jerry2000
Alumni

Bought a cabin in WI, how is that addressed at the Federal and State level. Have Form 5498, what is that for?

The purchase of a new personal residence (primary or secondary) is not a reportable event. You can deduct mortgage interest, points, and real estate property tax paid at closing. You report those expenses along with other mortgage interest/property taxes paid in the year at Federal Taxes (or Personal if using Home and Business) Deductions And Credits choose I'll choose what I work on, if asked OR Jump to Full List My Home All other costs paid at closing, including transfer taxes, "stamps", escrow fees, etc., are NOT deductible from current income, instead you add them to the cost basis of your home and you will get the benefit when you sell. You enter that only on your Federal return. Anything related to your state return is transferred by Turbotax automatically.

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