Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site ssc-vax.UUCP Path: utzoo!watmath!clyde!burl!we13!ihnp4!alberta!ubc-vision!uw-beaver!ssc-vax!eder From: eder@ssc-vax.UUCP (Dani Eder) Newsgroups: net.taxes Subject: Re: House purchase deductions Message-ID: <794@ssc-vax.UUCP> Date: Tue, 31-Jan-84 16:22:37 EST Article-I.D.: ssc-vax.794 Posted: Tue Jan 31 16:22:37 1984 Date-Received: Tue, 7-Feb-84 13:19:13 EST References: <331@bunker.UUCP> Organization: Boeing Aerospace, Seattle Lines: 23 31 January 1984 I'm in the process of buying a house, and was wondering about the same question. Here's what I found out: Most expenses of buying a house are not deductable. The major exception is interest. Interest occurs in two forms. One is if you buy the house before the end of the month. You then pay accumulated interest on the mortgage for part of the month. The other is if you pay your lender "prepaid interest" in order to obtain better financing often called "points" or "discount points". If it is identified as interest rather than a fee type payment, it is deductable. Some of the additional costs can be added to the "basis", or cost of the house. If you keep reciepts for these costs, and any other improvements you make to the house over the years, it will reduce the "gain", which is the difference between selling price and "basis". The gain is taxed. See a tax guide for details. I reccommend Lassers, which is the most detailed. Dani Eder Boeing Aerospace Company