First time home buyer

JDWynn84
JDWynn84 Member Posts: 1 Newcomer
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I am self employed and I purchased my first home this year. How will this affect the way I do my taxes? Are there any documents I will need? Are there any new types of deductions I can use?

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  • KennethH
    KennethH FreeTaxUSA Agent Posts: 15
    Answer ✓

    Hi,

    When you purchase and finance a house, you will have additional deductions. You will have mortgage interest, property taxes paid, and, in some cases, discount points that can be amortized over the life of the loan.

    You will have to exceed the standard deduction with all your itemized deductions in order to make it worthwhile to itemize. The best thing to do is fill out your itemized deductions on the software to see if you can itemize and reduce your taxes accordingly. Besides the deductions for the house, you can take deductions for state income tax paid, medical expenses (above the 7.5% of income exclusion), and charitable deductions.

    If you have additional questions, please let us know.

    Thank you.

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