Solved: I sold my home for under $250K, and built a new home. I paid taxes and interest on 2 diff homes this year along with taxes associated with buying. Where do I enter this
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jon-angell
New Member

I sold my home for under $250K, and built a new home. I paid taxes and interest on 2 diff homes this year along with taxes associated with buying. Where do I enter this

On my closing disclosure for the new home, there are a number of taxes listed, state/county/city.  Are all these deductible?  Where does this get entered in TT, and what if these taxes paid at closing are not on my 1098 from my new mortgage company?
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PaulaM
Employee Tax Expert

I sold my home for under $250K, and built a new home. I paid taxes and interest on 2 diff homes this year along with taxes associated with buying. Where do I enter this

Enter interest and property taxes paid for both homes in the Your Home section under Deductions & Credits. In general, for your home you are limited to interest, property taxes, points and private mortgage insurance.

Other Items on closing disclosure form that may be deductible:

  • Interim interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.
  • private mortgage insurance but, if prepaid, only the amount allocable to this year based on an 84 month amortization. 

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

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PaulaM
Employee Tax Expert

I sold my home for under $250K, and built a new home. I paid taxes and interest on 2 diff homes this year along with taxes associated with buying. Where do I enter this

Enter interest and property taxes paid for both homes in the Your Home section under Deductions & Credits. In general, for your home you are limited to interest, property taxes, points and private mortgage insurance.

Other Items on closing disclosure form that may be deductible:

  • Interim interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.
  • private mortgage insurance but, if prepaid, only the amount allocable to this year based on an 84 month amortization. 

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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