The Closing
- Introduction
- Before the Closing
- Home Inspection
- Sample Closing Costs for Items Paid by Buyer
- The Closing Timetable
- Loan Closing Checklist
- Tax Documentation
Tax Documentation
Once you officially become a property owner, you should keep good records for tax purposes. As we discussed previously, owning a home is one of the last middle-class tax shelters. Your closing documents contain valuable tax deductions. Make sure you save an extra copy of your closing statement for your tax accountant. Here's a quick summary of what's deductible and what's not:
Deductible
- real estate taxes paid by you at closing
- interest expense paid by you at closing
- points paid (subject to some limitations)
Non-Deductible
- homeowner's insurance premiums*
- water and sewer charges*
- prorated oil or other utilities*
- other expenses of a personal nature*
Other items on your statement may add to the tax basis of your home. Some of these items are:
- brokers' commissions
- attorneys' fees
- recording fees
- title search and survey
Share Article:
NHTrust is a trade name of New Hampshire Trust Company. Brokerage services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Investment and insurance products
are subject to investment risk, including the possible loss of value. Products and services made available through Osaic Institutions are not insured by the FDIC or any other agency of the
United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. Osaic Institutions and NHTrust not affiliated.
NHTrust is a brand name of New Hampshire Trust Company. We are proud to follow the TRUST approach with all customers and prospects.
