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Can I deduct "points"

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JoBarry

Guest
What is the name of your state? Arizona

Forgive my ignorance but I am a first time homebuyer and this year's tax returns are going to be a headache. My question is: Are points that you purchase towards your house tax deductibe? What makes this more confusing is that under the loan program I got the bank put money towards my closing costs, so essentially that paid part of the point. However, I believe that the amount they put forth was then added to my loan amount. The only closing costs I actually had to pay was towards my mandatory homeowners insurance policy. So, since I didn't actually pay up front for this can I deduct it? Also, what other deductions should I look out for on a home purchase? I did receive my mortgage interest statement but so far I am clueless as to what else I should be looking for.

By the way, this was a convential loan (not FHA or HUD) if that makes a difference. Thanks in advance for any advice. Joanna.
 


abezon

Senior Member
Points are usually called "loan origination fees" or "loan discount fees" on the HUD-1 settlement statement. You can deduct points no matter who pays them. If the seller pays them, you just make a little more profit when you sell the house.

Other deductions: charitable donations, employee business expenses, and all that stuff you gave to Goodwill when you moved (charitable non-cash donations). Value the stuff at what you would have to pay to buy it back. If your total is over $500 (and $1500 is not uncommon), you'll need to file a special form. If any 1 donation is over $250, you'll need a receipt from Goodwill describing what you gave.
 
J

JoBarry

Guest
Thanks Abezon! I totally forgot about the items I donated to Big Bros/Big Sisters (they only left a blank receipt...will that be okay).

In the past I have done the short form via Turbo Tax, however this year I will be doing the long form due to purchase of a house, changing employers, cashing 401k/pension so I am new to all the info I will need to itemize, etc. I appreciate your help. Joanna.
 

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