I bought a vacation home can i deduct closing costs

CrisM — Thu, 06 Jun 2019 00:16:32 GMT

I have a deed for a resort that I bought that we only pay maintenance fees and then the cost of the home how do I what do I use for that what's my exposure as far as payments or credit that I can get back

Buying a home (or vacation home) usually does offer tax b...

DianeW — Thu, 06 Jun 2019 00:16:33 GMT

Buying a home (or vacation home) usually does offer tax benefits because you are allowed to use mortgage interest and property taxes, sometimes mortgage insurance premiums (MIP) as itemized deductions on your tax return.

Itemized deductions are used if they are greater than the standard deduction allowed for your filing status (image attached for review). TurboTax maximizes refunds, and it compares both, ensuring the best outcome.

Note: In the year of purchase, depending on the time of year, there may not be enough deductions. Once you have a full year of expenses this can make a real difference in your tax liability.

If there are any property taxes paid either by escrow in the mortgage or by yourself be sure to include those. Use all allowable deductions such as contributions to various charities, medical expenses if they exceed 10% (7.5% if age 65 or older), miscellaneous job related expenses required by your employer if they exceed 2% of your income to maximize your deductions.

To record these expenses in TurboTax (online or desktop) version use these steps.

Use the search box, upper right
Search for itemized deductions
Jump to itemized deductions
Follow the prompt to enter your expenses

topic I bought a vacation home can i deduct closing costs in Deductions & credits

I bought a vacation home can i deduct closing costs

Buying a home (or vacation home) usually does offer tax b...