How do i deduct my closing costs of a home i purchased in 2019?

[xmasbaby0]

You don't .   Closing costs are not deductible.  You can only deduct mortgage interest, property tax, loan origination fees and private mortgage insurance paid in 2019.

Home Ownership

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.

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.

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, private mortgage insurance (PMI) and loan origination fees (“points”) that you paid in 2019.  You should have a 1098 from your mortgage lender that shows this information.  Lenders send these in January/early February.

HOMEOWNERSHIP DEDUCTIONS

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher.  Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.  

Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes. 

2019 Standard Deduction Amounts

Single $12,200   (+ $1650 65 or older)

Married Filing Separate  $12,200   (+ $1300 if 65 or older)

Married Filing Jointly $24,400   (+ $1300 for each spouse 65 or older)

Head of Household $18,350  (+ $1650 for 65 or older)

https://ttlc.intuit.com/questions/2926910-why-didn-t-my-refund-change-when-i-entered-my-mortgage-int...

[daa]

how/where can closing costs that are deductible as itemized, (items explained in reply above), be entered from closing disclosure or hud correctly if not listed on 1098? i read other Q&As that seem to contradict each other..? thank you in advance!

[VictoriaD75]

They can be manually entered as though you have a 1098. Only mortgage interest, points paid, and property taxes are deductible from the purchase of the home. Some additional expenses may be added to the basis of the property to determine gain in the year of the sale. Enter the deductible items in the Deductions & Credits menu under Your Home.

[daa]

thank you!

[DawnC]

You are most welcome!  

[daa]

thank you! when entering as separate 1098, should i check the box that says interest amount is different than whats on my 1098?