Hi! I purchased a house in 2022 as my primary residence and also did some remodeling before moving in. How will this affect my 2022 tax filing and if I can also deduct all the expenses related to the house including remodeling labor and material cost? Thank you!
Congratulations on the purchase of your new home! How exciting!
Purchasing a new home allows you to take deductions for mortgage interest ( up to 750K principal of mortgage) and property taxes ( up to 10 K max) as well as points to buy down the mortgage rate and mortgage insurance premiums.
If the total of these deductions as well as other itemized deductions exceeds the standard deduction for your filing status, you can itemize these deductions.
In regards to other closing costs you have incurred and remodeling and labor costs, these are not deductible the year you purchased the home. However, keep these documents and receipts with your tax records because you can add these to the price you paid for the home and increase the "cost basis " of the home.
The year you sell your home, you would report this on your tax return and the selling price of the new home less the "cost basis" may result in a lower taxable capital gain.
I have included a link to more information on the purchase of a new home:
https://turbotax.intuit.com/tax-tips/home-ownership/buying-your-first-home/L5QxJLcQT