We purchased a home 12/19/16, would be be able to deduct closing costs and is there a new homeowner credit?

[dg725425]

We have not recieved a 1098 and wasn't sure if we should have? Our first official mortgage payment was 2/1/17.. but we purchased 2016 and paid escrow.

[Howard1948 · Accepted solution]

You would not have received a Form 1098, but you should have received a copy of the closing documents.  Use that form to see if you incurred interest (probably did from 12/19 - 12/31), property taxes (probably didn't), Points on the mortgage loan or PMI.  Those items may be included in your itemized deductions for the year.  Other closing costs are not deductible but can be added to your adjusted cost basis in the property that will be used in determining your gain or loss on the sale of the property if and when you sell it in the future.

[dg725425]

We did place taxes into escrow- would that count?

[Howard1948]

No.  Escrowed prepaid property taxes are not deductible until the mortgage lender pays the governmental agency.