Purchase of a house

[Tschwab72]

My son and his fiancée purchased a house in November 2024 but the first payment wasn’t until January 2025.  They did use points to buy down the interest rate.  Would any of the interest, property taxes or points be a deduction in 2024 or would it be on their 2025 return even though the money went out the door in 2024?  They will be getting married in 2025.  If for some reason the wedding was pushed off until 2026 would that make a difference?  Thank you!

[xmasbaby0]

If they did not make any payments in 2024 then they do not enter anything about the house on a 2024 return.   The information will go on their 2025 tax returns that will be prepared next year in 2026.

[DianeW777]

Yes, the sales settlement statement should show the prorated share of property taxes that were required to be part of the closing and paid by your son and fiancée. Likewise it's possible the points would be listed as well.  Anything that is on the settlement statement would have been considered paid on the settlement date of November, 2024.

All payments to the bank or mortgage company paid in 2025 will be used on the 2025 tax return.

The standard deduction may still be higher in 2024 since the payments were minimal for 2024, but it's always a good idea to check. Since they both purchased, and if it is in both names, the home deductions can be split or one of them could take the expenses.

Single standard deduction for 2024 is: $14,600.

@Tschwab72 

[NCperson · Accepted solution]

if the money "went out the door" as reflected on the Closing Statement, then it can be used for 2024; the interest is not going to be on the 1098 form from the servicer.  

putting off the wedding (or never getting married) has no bearing on the deductibility. 

@Tschwab72