2017 New homeowner

[virtualflyer]

Hello,
I was planing to purchase a home in October this year, but it has been postponed to January 2018, I was wondering if it would reduced my income tax responsibility if I would had been able to close it the home purchase in 2017?
If it would made such difference, is there a way to know how much?
Thank you.

[xmasbaby0 · Accepted solution]

Home Ownership

deductible

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.

 Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, private mortgage insurance and loan origination fees (“points”) that you paid in 2017.  You should have a 1098 from your mortgage lender that shows this information.

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. 

https://ttlc.intuit.com/questions/2900844-where-do-i-enter-my-1098-mortgage-interest-statement

[virtualflyer]

Thank you for the quick response!

[fanfare]

buying a home at the end of the year may not help your taxes that year because you only get two months worth of deductions which often don't exceed the standard deduction

[Critter]

Closing on a home so late in the year would not help you on your tax return since the total of your itemized deductions would have to be more than the standard deduction ... and closing in Oct means you wouldn't make a payment until December at the earliest and one month of interest would not be enough to itemize as a rule. 

[virtualflyer]

Thank you for the quick response!