We bought a house in Nov 2016 but our first mortgage payments did not begin until Jan 2017. Are there any deductions we can apply?

[Melaine · Accepted solution]

Maybe, while it may not be much, when you purchased your home you could have a few expenses that can be deducted.  You will need your closing forms to determine this or you can contact your lender to see if you will be receiving a 1098, which will have the items you can deduct included. The following expenses would be deductible for your 2016 return if they were paid;

• Taxes you paid that the seller did not reimburse.
• Interest that you paid at the time of purchase
• Points or origination fee
• Private mortgage insurance costs (only if these were prepaid)

While you had other expenses, such as documentary stamp, credit report costs, transfer taxes, attorney fees etc., they will not be deductible, they are added to the cost of your home.  However, with your home purchase and paying for the entire year, 2017, you will have a lot more to deduct on your 2017 tax return.

[saradeann6]

But, how do I enter this deductible into TurboTax? All it has is "Enter Box 1 from 1098" but if I do not have a 1098, what do I put from my closing disclosure in that space?

[xmasbaby0]

You just added a question to a year old thread.  When did you purchase the house?  If you owned it in 2017 you should have a 1098 from the lender -- unless you closed at almost the end of the year.  Re-read the answer given above to the other person who asked about a home purchased at the end of the year.  The only thing you can deduct is any interest you prepaid, loan origination fees (points) paid at closing and private mortgage insurance if you paid for that.  If you pre=paid property taxes you can enter that.

[saradeann6]

I am in the same situation where I purchased the home in November so did not receive a 1098 as we did not begin mortgage payments until January of this year. So, I know what I can deduct based on this post and my closing disclosure. I am just confused as to how to physically put this information into TurboTax program.