Taxes after first home purchase!

[v8eaterWRX]

Wow this is kind of overwhelming! Between the first home purchase and the birth of my first child taxes are going to be a mess. Never had to file taxes that I couldn't do myself so this is going to be a huge step for me. 

I kind off like to get things in order before its time so I can file early (generally file in the first weeks of Jan) so I am trying to clearly understand things. 

As I understand it I will get all of the interest paid on the mortgage as a write off to lower my taxable income, a first time home buyers credit that will give me $7500 tax credit paid dollar for dollar, write offs for all home improvements (so far I have put about $1000 into the back yard and bought energy star front loading washer and dryer), and since I bought a foreclosed home I will get half of the $7500 credit this year and the other half next. Add all this to the write offs for my child and this should be one heck of a refund check!

My question is am I understanding these things correctly? If I am not, please help me to understand. This is a whole new world for me. 

[Anonymous]

You shoould be cautious.

If you bought a house so late in the year it may not have much positive influence for the current tax year. Itimeizing may not be the best option. Ask an expert. 

[v8eaterWRX]

I closed in June and about 900 a month of my mortgage is going to interest so I will have about $5400 in interest alone. Then again I have always filed as single where this year I will be claiming my daughter so the standard deduction will be higher. I plan on having a tax professional do my taxes this year, just trying to make sure that I am understanding things correctly.

[Watchmann]

You still may be better off taking the standard deduction rather than itemizing.  Work it both ways.  Unless your home is a rental property you can't take any deductions to 'improve' it in the year they are made, unless there is some new quirk in all of the bailout schemes passed this year. 

[itsjustmeibe]

Just an fyi, Any points you paid towards the loan are fully tax deductible. Make sure you review your settlement sheet carefully, sometimes they are not included with the Mortgage statement you receive at the end of the year.

[DallasLoanGuy]

Get a copy of your HUD1 Settlement statement(can writeoff some stuff) and talk to a CPA.

[Anonymous]

Is there an additional $7500 tax credit for buying a foreclosed home or are you referring to the orginal $7500 tax credit for first time home buyers?

[DallasLoanGuy]

---

@Anonymous wrote:

Is there an additional $7500 tax credit for buying a foreclosed home or are you referring to the orginal $7500 tax credit for first time home buyers?

---

it isnt a tax credit. it is a govt loan. you have to pay it back over the next 15yrs

 

[ShanetheMortgageMan]

---

@Anonymous wrote:

Is there an additional $7500 tax credit for buying a foreclosed home or are you referring to the orginal $7500 tax credit for first time home buyers?

---

No additional $7,500 tax credit for buying a foreclosed home, this was discussed a week or two back.