The purchase of a new personal residence is not a reportable event.
You can deduct mortgage interest, points, and real estate property tax paid at closing. You report those expenses along with other mortgage interest/property taxes paid in the year at
Federal Taxes (or Personal if using Home and Business)
Deductions And Credits
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My Home
All other costs paid at closing, including transfer taxes, "stamps", escrow fees, etc., are NOT deductible from current income, instead you add them to the cost basis of your home and you will get the benefit when you sell.
The purchase of a new personal residence is not a reportable event.
You can deduct mortgage interest, points, and real estate property tax paid at closing. You report those expenses along with other mortgage interest/property taxes paid in the year at
Federal Taxes (or Personal if using Home and Business)
Deductions And Credits
choose I'll choose what I work on, if asked OR Jump to Full List
My Home
All other costs paid at closing, including transfer taxes, "stamps", escrow fees, etc., are NOT deductible from current income, instead you add them to the cost basis of your home and you will get the benefit when you sell.
Since I sold my house in the middle of 2019 I will need to report mortgage interest and taxes for my old and now my new residence in another state...Correct?
Yes, correct. It makes no difference on the Federal return, you will enter all the Home Interest and property taxes paid in 2019.
IF there is an adjustment to be made on one of your state returns, you may need to adjust differently for one state or the other depending on the states you need to file with.
I enter a 1009 S and claims I owe over $33,000 in Fed and $11000 in State taxes. How do I record that I have purchased a new home?
You do not have to enter anything for the purchase of the new home, other than the mortgage and property taxes. The purchase of the home does not impact the sale of the previous one.
As far as the sale of the original property goes. As long as you owned and lived in the home for two of the five years before the sale, up to $250,000 of profit is tax-free. And if you’re married and file a joint return, that amount doubles to $500,000.
The two years do not have to be continuous. You could occupy it for six months and qualify for the exclusion.
Be very sure on the dates you occupy it to ensure that that you've completed the entire two year period.
IRS Pub 523: Rules for sale of home
I used IRA money to purchase a new residence because sale on previous home was delayed. When sale on previous home closed I rolled-over proceeds of sale into a new IRA. How do I handle this on 1040 S form, some other form. This all took place within 60 day period. Is this a taxable event?
If you received a 1099-R to report your IRA Distribution, when you enter your 1099-R, the follow-up questions in TurboTax will ask it you rolled it over to another account.
Click this link for info How to Report an IRA Rollover.
The proceeds on your home sale are usually not taxable, unless they exceeded 500K for a married couple, or 250K for single.
If you received a 1099-S, this link has instructions on How to Enter a 1099-S for a Home Sale.
If you didn't receive a 1099-S, you don't have to enter your home sale in TurboTax, unless you exceeded the exclusion amounts above.
For a Home Purchase, you can deduct Mortgage Interest, Real Estate Tax, and Points (if you paid them).
Click this link for more info on Deductible Home Purchase Expenses.
One point. When you put back the distribution did you put back the same amount? Was there any taxes taken out of the IRA money? Did you include the taxes when you rolled it to the new IRA?
To be Clear; I had an IRA cd with my bank which I Moved all the funds into my checking account, then I took funds from my IRA brokerage account with another trustee to provide the funds to purchase my new home. The total IRAs were then wired to the closing agent. When the buyer of my present home advised us they were ready to close (within the 60 day portal) the funds were wired by their broker to my broker where I had set up the Rollover IRA which was for the total amount I moved from my prior IRAs. Am I okay?
I put back in the New IRA the same amount as I had taken from the prior IRA, no taxes were taken out
So you should have two 1099R forms, one for each IRA account? Is there any amount in box 4 for withholding? Did you send the total of box 1 to the new rollover IRA? Or the net amount after the withholding?
What code is in box 7? Just enter each 1099R separately and answer the followup questions. Say you move it to another IRA account. Nothing about buying the house goes on your return. You do enter the house you sold but that is in a separate place, not to do with the IRA entries.
Where in the TurboTax premier program do I enter the purchase of a home and the expenses
Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2022. You should have a 1098 from your mortgage lender that shows this information. Lenders send these in January/early February.
There is not a first time home buyers credit on a Federal return. That ended in 2010. If your state has such as credit, you will be able to enter it when you prepare your state return.
Buying a home is not a guarantee of a big refund. Your deductions for homeownership combined with your other deductions (if any) must exceed your standard deduction to change your tax due or refund. If you purchased your home late in the year, you do not even have a full year of home
ownership deductions.
Your closing costs on your new home are not deductible except for prepaid interest, prepaid property tax or loan origination fees. There are no deductions for appraisal, inspections, title searches, settlement fees. etc.
Your down payment is not deductible.
Your homeowners insurance for fire, hazard, flood, etc. is not deductible for your own home.
Home improvements, repairs, maintenance, etc. for your own home are not deductible.
Homeowners Association (HOA) fees for your own home are not deductible.
It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher. Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.
Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.
2022 STANDARD DEDUCTION AMOUNTS
SINGLE $12,950 (65 or older + $1750)
MARRIED FILING SEPARATELY $12,950 (65 or older + $1750)
MARRIED FILING JOINTLY $25,900 (65 or older + $1400 per spouse)
HEAD OF HOUSEHOLD $19,400 (65 or older +$1750)
Legally Blind + $1750
As @jerry2000 mentioned earlier, you don't generally deduct the purchase of a home. What you may deduct as an itemized deduction are the mortgage interest, real estate taxes and point incurred at the time of closing associated with this purchase. All the other costs associated with the purchase like taxes, insurance and other appraisal,survey, loan origination fees would be added to the cost of the purchase of the home. All these items which appear on a closing statement should be kept for your records, so when you decide to sell your house in the future, you will know how to calculate the cost.