First Time Homebuyers

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TBrownslady

TBrownslady

BINGO!
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There is so much information that I have had put into my head the past 2 months that my head is ready to explode.

I figured I would start a thread in case there are things I may not remember or that I am not aware of.

We want to take every advantage we can when filing taxes for next year as first time home buyers. We will be getting married in the court probably this month, so technically we will be married and filing that way.

I know we have to keep receipts. Does that include EVERYTHING? Like if I go to CVS and buy my hair products do I save that and claim the sales tax paid? Or is it more for stuff like any furniture, or repairs that we do?

Any other kinds of tips that you all may know about that would help?

I just don't want to go file our taxes next year and be like damnit I shouldn't of thrown that away. Or not take advantage of any credits because I am unaware of them.

Any info is very much appreciated!!
 
Certainly not an expert, but I am on my second Home, and not really sure there are many "write offs" other than energy efficient replacement items that fall under the energy rebate such as windows, insulation, etc, etc.

Don`t think any personal items, unless you run a Business out of your Home which I did for years, or if you have rental property which I also had(both a the same time).

Other than that, keeping receipts for resale purposes or warranties is always a good thing.Not sure of any way to recoup "Sales" tax.

If you have a good tax preparer, they should know what you need.For the little it cost to have a pro do your Taxes, its worth it, they will know of things you might miss doing it on your own and help you either pay less tax on top of what you already paid or get you a bigger refund.
 
Good advice. Get a pro. Most things, even medical expenses are not deductible until you reach a certain threshold.

However, many things from closing ARE deductible. Like the stamps and taxes paid at closing. On your home, like TD said, unless its a place of your business, or a rent producing property, about the only things you can deduct are the interest paid and property taxes. Your state income taxes will become deductible too, but you have to add this year's refund as income.

First time around, hire a pro.
 
Sales tax may be a deductible against your federal income taxes. This is an itemized deduction and is claimed on Schedule A. The sales tax deduction is available only for the years 2005 through 2011. For 2012 and later, the sales tax deduction will go away unless Congress extends this particular tax break.

Cheers, BostonTim
 
Mortgage interest and property tax are both deductible.
So are points paid to buy down the loan I believe (it's been years since I had to know this, so don't know details). Med expenses for 2012 you have to exceed 7.5% of your income out of pocket to de duct them, for 2013, part of the ACA is that it goes up to 10%.
You may want to have your tax preparer look at doing your taxes married filing singly and jointly because IIRC if your incomes are close, it may benefit you to do it separate.
I think there is a separate credit for first time homebuyers, or at least there was. That may have gone bye bye.
 
Not tax related, but make sure you take out a Mass. Homestead Act on your home, which will at least protect the first $125,000 of equity in the house against debt, should anything happen where you can't make payments. Creditors can't touch the first $125,000.
 
PatsFanLisa said:
Not tax related, but make sure you take out a Mass. Homestead Act on your home, which will at least protect the first $125,000 of equity in the house against debt, should anything happen where you can't make payments. Creditors can't touch the first $125,000.
Click to expand...

I like that law!

~Dee~
 
eaxch state has its own laws...most states give deductions for energy efficient appliances....boiler.....new room....upgrasded insulation...windows....attic ventilation....hot water heaters....central or ductless air systems.....these are all things i have claimed over the past 10 years.......yep.....i overhauled my entire house it seems
 
Assuming you will itemize your deductions (for mortgage interest, etc...), there is a section of "Taxes You Paid" (lines 5 thru 9 - but in this case we are talking about line 5).

On line 5 you can choose to deduct either A) State and Local Income Tax you had withheld or B) General Sales Taxes you paid. If you do choose B, there are some restrictions on the type of item purchased and how much you can deduct. (And chances are your Income Tax Withheld would be the greater of the two anyway so you'd probably be choosing option A anyway).

My advise, deduct your Income Tax Withheld, and buy everything in New Hampshire. :)
 
PatsFanLisa said:
Not tax related, but make sure you take out a Mass. Homestead Act on your home, which will at least protect the first $125,000 of equity in the house against debt, should anything happen where you can't make payments. Creditors can't touch the first $125,000.
Click to expand...

Good advice, but I think that protection only applies to unsecured creditors.
It does not protect you from the mortgage company if you default, for instance.
 
patswin said:
Good advice, but I think that protection only applies to unsecured creditors.
It does not protect you from the mortgage company if you default, for instance.
Click to expand...

Correct. I worded it wrong.
 
Thank you all for all of your advice! W are going to hold off on any major renovations until after the wedding. Luckily the roof is practically brand new, as are the windows, and the finished basement. Its got great insulation. The only thing we need to do right away is the deck and fix a couple of things in the front. Once we are settled and figure out how long we will stay there then we week into updating the kitchen and 1 of the bathrooms. Also interested I'm solar panels. But if we aren't planning on being there for to long i don't know if its worth it. The house sits at the top of a hill in the sun all day long. Plus everything is electric so they would help.
 
TBrownslady said:
Thank you all for all of your advice! W are going to hold off on any major renovations until after the wedding. Luckily the roof is practically brand new, as are the windows, and the finished basement. Its got great insulation. The only thing we need to do right away is the deck and fix a couple of things in the front. Once we are settled and figure out how long we will stay there then we week into updating the kitchen and 1 of the bathrooms. Also interested I'm solar panels. But if we aren't planning on being there for to long i don't know if its worth it. The house sits at the top of a hill in the sun all day long. Plus everything is electric so they would help.
Click to expand...



http://www.ehow.com/how_7597672_can-assistance-converting-heating-system.html
 
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