Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted?

cynthiamarino196 — Mon, 06 Jul 2020 18:36:46 GMT

Re: Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted?

Anonymous — Mon, 06 Jul 2020 18:38:45 GMT

It can not be deducted. it's part of the purchase price of the house. you paid less at closing because of the down payment.

Re: Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted?

Opus 17 — Mon, 06 Jul 2020 19:00:35 GMT

A down payment is never deductible. It's part of your investment in the home.

The only things you can deduct on a house closing are mortgage interest, mortgage insurance premiums, and property taxes, and you only deduct them in the year you pay them. Check your closing statement and your 1098 at the end of the year, you may have made a tax payment or daily interest on the closing statement that is not included in the 1098, but you can still deduct it.

Other closing expenses (inspections, bank fees, transfer taxes and document fees, etc.) are not deductible, but they are treated as being part of the purchase price. When you sell the home, your taxable gain is the difference between the selling price and purchase price, so a higher purchase price may reduce your eventual taxable gains.

topic Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted? in Deductions & credits

Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted?

Re: Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted?

Re: Can a down payment made on a home in 2019 but the house wasn't closed on until Feb be deducted?