So how does buying a house help with doing my income tax return?

I just bought a house november 2007 and I don't know the hype about buying a house and having it help with my income tax?

How are they related or what should I be applying for?

I live in Round Lake, IL (Lake county)

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  • 1 decade ago
    Favorite Answer

    You might be able to take off the real estate tax you pay and mortgage interest. Also, in some years, certain home improvements (e.g. solar panels for energy). This varies from year to year, so I would check with a tax professional or look at the current J.K. Lasser tax guide, available in many public libraries.

  • Anonymous
    1 decade ago

    You will get a statement from your mortgage company which will show how much interest and deductible points you paid in 2007. If you itemize deductions on your tax returns you will be able to reduce your taxable income by the amount of that interest and/or points. If you have never itemized before, figure your tax liability with and without deductions and file the way that saves you the most money.

    ***

  • Anonymous
    1 decade ago

    well it has to do with interest rates. etc. you would do itemized deductions that would be the interest you paid on your mortgage, house taxes, car taxes, anything you bought for the house, etc. not sure what the amount is in your state but here its 10,000 dollars you have to pay in to get money back. so if its over that it may be better to do itemized deductions than it would be to do standard. hope this helps

  • Anonymous
    1 decade ago

    When you purchase a home, all the money you pay into it,

    pays off the "interest" first. That way, you get more tax back,

    at the end of the year. ($_$). Good Luck. <}:-})

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  • 1 decade ago

    Talk to your accountant--you can write off the interest that you pay every year on your mortgage. Some democrats in congress have been talking about doing away with this though...

  • 1 decade ago

    I believe that you can deduct the interest you pay from your taxes.

    Source(s): my mom
  • 1 decade ago

    BUYING A HOUSE THE "PITCH" IS THAT YOUR INTEREST IS TAX DED.

    THE QUESTION NOW IS, HOW DO YOU DO YOUR TAXES WHICH DETERMINES IF THAT WORKS OR NOT.

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