Itemizing works for many -- but not all -- homeowners. Choose the deduction method that gives you the larger deduction amount: sometimes, it's the standard deduction. Also, the time of year when you actually closed on your house could make a big difference in your deduction method choice.
Make the most of mortgage interest. If you itemize, be sure to write off all the interest you paid on your mortgage (even from private loans,such as seller financing).
Hang onto your HUD-1. Don't rely solely on Form1098 information. Initial adjustments of interest for the first month following a sale should be figured in; that information can be found on the HUD-1 closing document.
Points pay off. You can deduct points for the tax year in which you purchase the home. They're fully deductible... as long as they are reasonable and consistent in the area where you bought your home. And if it's a primary residence, you can choose to amortize or deduct the points all at once.
Check your property tax bill. Depending on when you bought your house and your jurisdiction's tax year, you may be able to claim a deduction.
Home-Equity loan or line of credit? As long as the loan (of up to $100,000) is secured by your residence, its interest is deductible.
Self-employed and working out of your house? Don't forget about any home office deductions to which you may be entitled.
Did you make improvements to your home to alleviate a medical condition? Be sure to itemize these, too.
Source: Bankrate.com
The NH First-Time Homebuyers Club makes the home purchase an easier one. Better yet, it's absolutely free! Learn more at www.NHFirstTimeHomebuyer.com.
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