Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 9/27/83; site saturn.UUCP Path: utzoo!linus!security!genrad!grkermit!masscomp!clyde!floyd!harpo!seismo!hao!hplabs!saturn!johnson From: johnson@saturn.UUCP Newsgroups: net.taxes Subject: Re: House purchase deductions Message-ID: <1927@saturn.UUCP> Date: Mon, 30-Jan-84 11:36:28 EST Article-I.D.: saturn.1927 Posted: Mon Jan 30 11:36:28 1984 Date-Received: Thu, 2-Feb-84 01:04:18 EST Organization: Hewlett Packard Labs, Palo Alto CA Lines: 14 At the risk of being the n-th person to answer this inquiry, here goes: Generally, anything on your closing statement marked "interest" or "taxes" is fully deductible in the year of purchase. If you're buying the house as your personal residence (that is, not for investment), you can also deduct as interest anything marked "loan fees" or "mortgage points". If some of the attorney fees are for tax advice (and you have a receipt that says so), then you can deduct that as a Miscellaneous Deduction on Schedule A. That's it. Everything else must be added to the tax basis for the property, which has the net effect of reducing the amount of capital gains tax you might have to pay someday, when you sell the house. -- Mark Scott Johnson