What Can I Claim if I Sell or Buy a House?

what can you deduct when you buy a house

Many people squeeze tax savings out of a home transaction.

Moving Expenses

If you're buying or selling a house as a part of a job-related move, the IRS may let you deduct your moving expenses. To be able to write off the cost of your move, your new house needs to be at least 50 miles closer to your new job than your old house was to your old job. You will also have to work for a certain portion of the first two years in the new location. If you meet these tests, you can write off all of your moving expenses including travel costs. Technically, the moving expense deduction is considered an adjustment to your income, so you'll be able to claim it even if you don't itemize your deductions, but you cannot deduct relocation expenses that may have been covered by the new employer.

Property Taxes

When you close on the sale or purchase of

your home, you may end up paying property taxes for the period between when the house closes and the next payment is due. Any city, town or county property taxes that you pay at closing will be tax deductible. To deduct the property taxes you pay at closing, you'll have to itemize your deductions.

Prepaid Interest

Discount Points

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    Source: homeguides.sfgate.com

    Category: Taxes

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