First house purchase

Forum|Forum|3 years ago
November 16, 2022
1 reply
9 views

Hello,

I purchased my first house and wanted to know what itemized deductions can I claim, apart of the mortgage interest (capped at $750k mortgage) and property tax (capped at $10k deduction) ? Are there any other areas that can help me lower my tax liability especially since I'm on a higher tax bracket ? My mortgage is much higher than $750k and I paid around $100k to get the house upgraded before move-in.

Thanks a million !

mbpeddie

Employee Tax Expert

Congratulations on the purchase of your first home! Very exciting!

Regarding your itemized deductions , you are correct that you can deduct mortgage interest ( capped at 750K principal) and property taxes ( capped at 10 K)

Regarding the closing costs and improvements made to the property, you cannot deduct them when you purchase the home but keep these with your tax records because when you sell your home, you can add these to the "cost basis" of the property and reduce any taxable gain you may have at that point.

https://turbotax.intuit.com/tax-tips/home-ownership/buying-your-first-home/L5QxJLcQT

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