Tax Filing for first time home buyers

Cherokeekid88

Cherokeekid88

Well-Known Member
Joined
Jun 30, 2007
Location
High Point, NC
Just trying to get an idea on what im going to be up against. My fiance and I bought a house back in August and I know that there is a bit more steps on filing taxes now, I am actually having a place do mine this year instead of me doing them myself....What are the benefits/downsides to owning a house and filing taxes for non married couples? I know that only one of us can claim the house..any tips who it should be? things like that?
what will benefit us into getting a larger return?
 
You get to deduct the interest paid towards the mortgage off you AGI.
Whomever's name is on the mortgage is the only person who can deduct it.
If you are both on it and not married....well that is going to be a mess to do it right/legally...
 
Ron said:
You get to deduct the interest paid towards the mortgage off you AGI.
Whomever's name is on the mortgage is the only person who can deduct it.
If you are both on it and not married....well that is going to be a mess to do it right/legally...
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from my understanding....the process is that only one of us can claim the house...Both of our names are on the mortgage
was also doing a bit of reading and saw that the person who makes the most should be the one who claims the deduction?
This is all new to us and just wanna get an idea of whats ahead.
 
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I'm no CPA..but my understanding is this.

Since you as a non married couple purchased the house jointly it became an investment vehicle or the asset of a joint partnership.

You need a tax man, IMHO.
 
Let me see if i can help. The only way you will be able to benefit from your mortgage interest and PMI (if you have it) is if you itemize your deductions on your 1040. If your itemized deductions are not higher than the 2013 individual standard deduction ($6,100) then you will just take the standard and you will not have any benefit this year from your mortgage. Now onto whom should take the deduction, run the numbers and they will tell you, but yes, usually the person with the higher income will benefit more.

If you want to tackle it yourself, buy Turbotax and it will walk you through step by step
 
BigClay said:
Let me see if i can help. The only way you will be able to benefit from your mortgage interest and PMI (if you have it) is if you itemize your deductions on your 1040. If your itemized deductions are not higher than the 2013 individual standard deduction ($6,100) then you will just take the standard and you will not have any benefit this year from your mortgage. Now onto whom should take the deduction, run the numbers and they will tell you, but yes, usually the person with the higher income will benefit more.

If you want to tackle it yourself, buy Turbotax and it will walk you through step by step
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Not gonna try and tackle it myself...I can see it now.My inlaws have a place they have been going to for years and I will do the same this year.
Just wanted to do a little homework before hand.
 
Not sure if it's been said but...don't expect this to get you a crap ton of money back on your taxes. Unless you're paying 10k+ in mortgage interest a year, there's little to know difference. Actually may be better to take standard deduction in some cases. I'm single, pay approx. 7600 in mortgage interest per year, 1300 on property taxes and get back 800 - 1000 per year.

Finally got my paymt below 750 per month. If rates were back to 6% or higher, I would rent forever. Home ownership is highly over-rated in my opinion.
 
My ex and I were not married and both of our names were on the mortgage initially.

Only I could claim it and only if I itemized (which I do ever year)

But like Ron and others have said, a good tax man is well worth it. Do not use H.R. Block. They are idiots.
 
John B. said:
Not sure if it's been said but...don't expect this to get you a crap ton of money back on your taxes. Unless you're paying 10k+ in mortgage interest a year, there's little to know difference. Actually may be better to take standard deduction in some cases. I'm single, pay approx. 7600 in mortgage interest per year, 1300 on property taxes and get back 800 - 1000 per year.

Finally got my paymt below 750 per month. If rates were back to 6% or higher, I would rent forever. Home ownership is highly over-rated in my opinion.
Click to expand...
i figured this was the case....now what about the money that we used to pay the downpayment for the house...is that tax deductible?
 
Wait until Feb when you get your tax documents, W-2 or -4 for income (I can never remember which one is income) and your mortgage year end statement. You can enter everything in turbotax.com for free...you don't pay until you go to e-file. Thru the whole process, you can see what your tax refund/payment is, it updates as you enter info. When you're done entering deductions (mortgage insurance, property/vehicle tax, charitable deductions, etc), it will steer you to the better-for-you option for standard or itemized deductions.
 
I'm kinda interested in this stuff for next year. I'm at the threshold of building a house (no pun intended).
 
My method of dealing with taxes:
- Stick all tax related items in a folder in the file cabinet as they arrive in the mail
- Drop off folder at the accountant's office
- Go do something fun instead of spending the w/e inside on the computer
 
drkelly said:
My method of dealing with taxes:
- Stick all tax related items in a folder in the file cabinet as they arrive in the mail
- Drop off folder at the accountant's office
- Go do something fun instead of spending the w/e inside on the computer
Click to expand...
this. I drive myself crazy every year when I have to force myself to sit down and do this.....
 
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