: For verifying payments made outside of escrow. Topic no. 701, Sale of your home | Internal Revenue Service
: If you "bought down" your interest rate by paying points at closing, these are often fully deductible in the year you paid them, provided they meet specific IRS criteria. Ongoing Costs to Budget For
: Mailed by your lender annually to report mortgage interest. buying a house and taxes
: Many lenders require you to pay a portion of your annual property taxes each month as part of your mortgage payment to ensure they are paid on time. Long-Term Tax Considerations
: You can deduct up to $10,000 ($5,000 if married filing separately) for a combination of state and local income taxes or sales taxes, and your local property taxes. : For verifying payments made outside of escrow
: While general maintenance isn't deductible, keeping receipts for major "capital improvements" (like a new roof or addition) can help increase your home's "cost basis," potentially reducing your taxable gain when you sell. Essential Documents to Keep
Buying a house introduces significant tax benefits and ongoing responsibilities that can lower your overall tax bill or impact your monthly budget. Ongoing Costs to Budget For : Mailed by
: These are calculated based on your home's assessed value multiplied by local tax rates. It is highly recommended to check your specific County Assessor's website to estimate these costs before purchasing.