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victorbakal
New Member

I'm purchasing a home. The mortgage company is listing it as a 2nd home even though it's my primary. I'll change it with the county after closing. Any tax implications?

I am commuting to another state for the time being in order to keep my current employment, but staying with a friend. My wife will be living in our new home.
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xmasbaby0
Level 15

I'm purchasing a home. The mortgage company is listing it as a 2nd home even though it's my primary. I'll change it with the county after closing. Any tax implications?

You can get the same tax deductions on a "second" home as your primary home--mortgage interest paid, property taxes paid, loan origination fees ("points") and private mortgage insurance.

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 2016.  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. 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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2 Replies
xmasbaby0
Level 15

I'm purchasing a home. The mortgage company is listing it as a 2nd home even though it's my primary. I'll change it with the county after closing. Any tax implications?

You can get the same tax deductions on a "second" home as your primary home--mortgage interest paid, property taxes paid, loan origination fees ("points") and private mortgage insurance.

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 2016.  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. 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

View solution in original post

Zbucklyo
Level 9

I'm purchasing a home. The mortgage company is listing it as a 2nd home even though it's my primary. I'll change it with the county after closing. Any tax implications?

There are no federal income tax ramifications, but there may be property tax ramifications.  Some jurisdictions provide a "homeowners exemption" on residential real estate in which owner-occupied properties have some portion of their assessed valuation exempt from tax.

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