Buying a new home in 2022

[Steve10S]

What is involved taxwise in the purchase of a new home in 2022?

[mbpeddie]

Congratulations on the purchase of your new home! How exciting!

Purchasing a new home allows you to take deductions for mortgage interest ( 750 K principal max) and property taxes ( 10K max) as well as points paid to buy down the interest rate on your mortgage and mortgage insurance premiums.

If these amounts including other itemized deductions exceed the standard deduction for your filing status, you can itemize these deductions on your tax return.

The other closing costs on the purchase of your home are not deductible the year you purchased the home but keep these documents with your tax records as you can add the closing costs as well as any improvements you made to your home to the "cost basis" of the property which will reduce any capital gain you might have when you sell the property.

I have included a link to more information on buying a new home :

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