TurboTax and Home Purchase

[eytonxav]

DS purchased his first home last year and will need to capture the purchase on his tax return. The closing agent recommended that he use a paid preparer, but I am not sure that should be necessary. To this end, is there any reason not to use TurboTax for a home purchase transaction (complexity, possible confusing terminology, etc)? I would appreciate hearing the thoughts of anyone that has recently used TT for a home purchase.

 

[rbmrtn]

I wouldn't think there would be need of a tax preparer. You get a 1098, put that in the program.

Here's a TT link

Buying Your First Home - TurboTax® Tax Tips & Videos

 

[Animorph]

The mortgage is the only "hard" part. And that's just entering info TT will ask for. Of course, have DS save all tax basis info for the house.

 

[eytonxav]

I wouldn't think there would be need of a tax preparer. You get a 1098, put that in the program.

Here's a TT link

Buying Your First Home - TurboTax® Tax Tips & Videos

The mortgage is the only "hard" part. And that's just entering info TT will ask for. Of course, have DS save all tax basis info for the house.

Thanks guys, thats what I thought.

 

[meierlde]

The mortgage is the only "hard" part. And that's just entering info TT will ask for. Of course, have DS save all tax basis info for the house.

Actually you should save the closing statement which provides all the information needed. One might make a copy and keep that on the computer with the years tax return in PDF.

 

[eytonxav]

Actually you should save the closing statement which provides all the information needed. One might make a copy and keep that on the computer with the years tax return in PDF.

Yep, the closing statement is important, since although he paid property tax for the entire tax year to the county, the prior owner's prorated share of that tax was accounted for at closing, so he will only be able to report his applicable share of the tax.

 

[target2019]

Yep, the closing statement is important, since although he paid property tax for the entire tax year to the county, the prior owner's prorated share of that tax was accounted for at closing, so he will only be able to report his applicable share of the tax.

Thanks for the reminder. That was timely!

 

[RunningBum]

I think the loan origination fee and any discount points for the mortgage are also deductible. I would bet that TT asks you about this or has help to say what parts of the closing costs are deductible.

 

[Animorph]

I think the loan origination fee and any discount points for the mortgage are also deductible. I would bet that TT asks you about this or has help to say what parts of the closing costs are deductible.

It does, thank goodness. I let it figure the math on deductible points, since they must be amortized over the life of the loan. I don't think the origination fee is deductible, but extra points to buy down the interest rate definitely are.