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Hello! We just bought a new house at the end of this year, and I don't know if we qualify for a 1098 form. I have the HUD-92900-A form and the closing disclosure form. Can this be used in the deductions area??

 
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Hello! We just bought a new house at the end of this year, and I don't know if we qualify for a 1098 form. I have the HUD-92900-A form and the closing disclosure form. Can this be used in the deductions area??

Yes you can use your closing statement or HUD documents.

Most expenses at closing on the purchase or refinance of a home are added to the cost of a home and are not deductible but are added to the cost basis of the home.  There are a few exceptions - the following would be deductible:

1. Interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment.) This is sometimes included in the 1098 from the new lender.

2. Real estate taxes charged to you and not reimbursed by seller

3. Points or origination fees.  On a refinance they need to be amortized over the life of the loan unless the points were used to improve your main home.

4. Private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization.

Title fees, real estate commissions, documentary stamps, credit report costs, costs of an abstract, transfer taxes, attorney fees, etc. are not deductible, but are added to the cost of the property.

If you have deductible expense, you enter them in Federal Taxes, Deduction & Credits under Your Home. You may not see any tax benefit from them. They are itemized deductions and the total of all your itemized deductions must be more than the standard deduction for you to get a tax benefit.
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