Home Purchase, What’s Deductible?

There are tax advantages to owning real estate.  When you purchase a home any points you may have paid in conjunction with the mortgage would be tax deductible for the year in which they were paid. Lenders may also refer to points as a loan origination fee or discount points.  In order for this to be deductible the lender must have listed this as points. If you purchased a home in 2009 it is very important to review your settlement statement from the closing to obtain these figures. If you purchased a second home and paid points these can be deducted over the life of the loan. In a situation that the  seller paid points for you as part of the transaction these points can also be deducted by you.  There are income limits that apply and if you exceed this limit your points may not be fully deductible.  Please see you accountant for any questions concerning the legalities of tax deductions. Indianapolis, Indiana is a great place to purchase a home, boasting some of the best values in the country.