You just signed on the dotted line. You are a homeowner. Heck yeah!
Now what?
You will clearly be busy moving for the next few weeks, but after that you will want to start reaping the rewards of home-ownership. Those home-ownership rewards started accumulating the minute you broke out your writing hand and started signing.
Closing & Home Acquisition Costs
In the tax year that you buy your home, you’re able to claim the discount points as a tax deduction. When you refinance however, the discount points paid must be deducted over the life of the loan.
Pay attention to those time-based deduction calculations, they can get tricky.
Moving Expense Deduction
Sometimes we find ourselves in the position of not just having to improve our homes, but also having to get rid of them entirely.
While we already covered how selling a house has its tax benefits, you should also know that if you’re forced to move for a job, you can write off some pretty nice deductions too.
You do have to qualify, and that includes making sure the new digs are 50 miles (80 kilometers) or more from your old place. You also have to make sure the dates of your move reasonably line up with your story.
Additionally, if you do have to buy a new place due to relocation for work, know that your moving expenses — and that includes transportation, temporary housing, even storage and shipping — are all deductible.
Amazon.com Best-selling author, Shashank Shekhar (NMLS 8176) is a mortgage lender with Arcus Lending, offering loans for home purchase and refinance. Shashank has been featured as a mortgage expert on Yahoo! News, ABC, CBS, NBC and FOX. He has been named "Top 40 under 40" most influential mortgage professionals in the country.
