You will deduct the mortgage interest and property tax paid in 2016 if you are able to itemized deductions. Be sure to include any points as well as mortgage insurance premiums (also known as MIP or PMI). This information will be on the settlement statement, usually known as the HUD1, or on the year end statement from the lender. If property taxes were paid by you and not the lender (this is the escrow account) you would determine that amount from your payments.
- If the standard deduction is used then you would not use these expenses.
The purchase price will be contained with the documents showing your original investment when you bought it and will be used against a future selling price to reduce any taxable gain at that time. If you make improvements that extend the life of the property retain the records to continue to track your cost of the property.
If, at some future point, you decide to convert it to a rental property there will be deductions at that time.
- To record itemized deductions in TurboTax (online or desktop):
- In the search box upper right type itemized deductions
-
Jump to itemized deductions.
