Purchased a home in 2023

Anne Member Posts: 1 Newcomer

I purchased a home on 12/20/2023. I know certain items are deductible from the settlement statement, but in what tax year are they claimed/included on tax return, year of purchase (tax year 2023) or next filing season (tax year 2024)? I did not receive a form 1098 from the new mortgage company showing these deductible items.

What specifically can I claim, the entire amount or pro-rated amount according to number of months/days purchased? If any of this makes sense…

Thanks for your advice!


  • RyanZ
    RyanZ FreeTaxUSA Agent Posts: 70
    edited April 24

    Generally, unless you are using the home as a rental property, the only items that you might be allowed to deduct on your 2023 tax return is an allocation of property taxes paid (per the closing documents) and mortgage interest expense paid during 2023.

    On your 2024 return it will be the same, unless it is a rental property, you will only be allowed the property taxes and mortgage interest paid.

    If the property is a rental, log into your FreeTaxUSA account and contact Support so that we may provide you with specific guidance to your situation.

    Another important caveat is even if you are allowed to claim the property taxes and mortgage interest paid on your tax return, it won't benefit you unless your TOTAL ITEMIZED DEDUCTIONS are greater than your standard deduction. Here is a link to the instructions for the Schedule A - Itemized Deductions https://www.irs.gov/instructions/i1040sca

    When dealing with a personal residence, any upgrades, additional, remodeling, landscaping, ect that you pay for will be added to the cost that you paid for the residence. Because these are NOT reported on the income tax return, you must keep track of them separately. When you sell the residence, you will be able to deduct the purchase cost of the home as well as deduct the improvement costs from the selling price.

  • RRM
    RRM Member Posts: 1 Newcomer

    Seniors with no other source of income than social security benefits, are they required to file 1040 for the year?

  • TaxMorgan
    TaxMorgan FreeTaxUSA Agent Posts: 12

    There are a lot of factors that determine whether or not an individual is required to file a tax return. The IRS has a great tool with their Interactive Tax Assistant that can help you determine if you need to file a tax return. You can find that here: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return