topic Bought house 2018, used standard deduction per turbotax 2018. If I itemize in 2019, can I use closing cost for 2019 that was not deducted for 2018 since I didn't itemize? in Deductions & credits

Bought house 2018, used standard deduction per turbotax 2018. If I itemize in 2019, can I use closing cost for 2019 that was not deducted for 2018 since I didn't itemize?

C4Liberty — Thu, 30 Jan 2020 08:48:58 GMT

Re: Bought house 2018, used standard deduction per turbotax 2018. If I itemize in 2019, can I use...

DMarkM1 — Thu, 30 Jan 2020 14:27:24 GMT

No. Deductions for 2019 are for items paid in 2019. The deductions for homeowners are usually mortgage interest paid, real estate taxes paid, and qualifying mortgage insurance premiums paid. Like in TY 2018 if these plus other potential itemized deductions (out-of-pocket medical, personal taxes, charitable contributions) don't exceed your standard deduction, then you would normally take the standard deduction.

Re: Bought house 2018, used standard deduction per turbotax 2018. If I itemize in 2019, can I use closing cost for 2019 that was not deducted for 2018 since I didn't itemize?

Anonymous — Thu, 30 Jan 2020 19:59:42 GMT

what costs do you think relate to 2019? the only one I can come up with is real estate taxes. in some places, taxes are assessed in arrears. thus In say Illinois you would pay 2018 real estate taxes in 2019. on the closing statement you would get a credit for this for the portion of 2018 you didn't own the home. But this would be a reduction of the 2018 taxes you paid in 2019. the closing statement should indicate what period is covered.

there is another possibility. perhaps the seller fully paid for the 2018 taxes, in that case, there would be a charge for the portion of the 2018 taxes that you should have paid.

unfortunately, we can not see the closing statement so this may be way off base in your situation.

most closing costs become part of basis.

perhaps if you detailed those items that are for "2019", we could give you a better explanation.