Tax deductions for home ownership.

If you’re like most people, your home is the largest investment you’ll make in a lifetime. It’s a longterm
investment that plunges most homeowners into instant debt, but it also provides ongoing tax
deductions, such as mortgage interest and property taxes. To take full advantage of these deductions,
it’s important to keep accurate records of your expenses. In addition to the purchase price, you
should keep the following on file:

  • Closing costs, such as abstract fees, title and search fees, recording fees, survey fees, and
    transfer taxes.
  • Points paid, loan origination fees, maximum loan charges, loan discount or discount points.
    Generally points paid at closing are deductible in the year of purchase, regardless of who pays them,
    unless you elect to amortize them over the term of the loan.