As buying a new home is not a reportable transaction
per IRS, there is no a special section in the TurboTax online program to record
the transaction. However, you are allowed to claim the
following deductions related to your home:
1. Mortgage Interest Expense
2. Real Estate Taxes
3. Points
4. Mortgage Insurance Payments ( if there is any)
At closing, you can deduct mortgage interest, points
and property tax. All other expenses of closing are not deductible. Instead,
you add them to the cost basis of your home to reduce the gain when you
sell. You are advised to save the closing statement until you eventually
sell your home.
To enter information in TurboTax online program, go to:
After sign into your account and select Take
me to my return
1. On the screen, from the top, select
tab Federal Taxes / Deductions and Credits
2. Scroll down to Your Home,
select Mortgage Interest, Refinancing and Insurance and
3. Property ( Real Estate ) Taxes to
enter related information
Please note that when you enter itemized deductions such as mortgage interest,
property taxes, medical expenses, charitable contributions, all of these items
are added together on Schedule A. Unless the total of
itemized deductions exceeds the standard deduction for your filing status, you
would not see any change in tax due or refund.
For more information, please see this TurboTax
Guide to Home Ownership
IRS Pub. 530, Tax Information for Homeowners
http://www.irs.gov/pub/irs-pdf/p530.pdf
and IRS Pub. 523, Selling your home
http://www.irs.gov/pub/irs-pdf/p523.pdf
