tax deduction questions concerning mortgage

[neptunejcw]

I just closed on my house last September 2015 with a FHA loan. This is my 1st house & tax season is here, what are some things that can be written off besides mortgage interest etc..is any of my closing cost tax deductible? I live in the state of Indiana? What am I to expect?

[Anonymous]

It is best to contact an accountant with this question, as they would be the only one to give you 100% accurate advice for your individual situation.

[StartingOver10]

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@neptunejcw wrote:
I just closed on my house last September 2015 with a FHA loan. This is my 1st house & tax season is here, what are some things that can be written off besides mortgage interest etc..is any of my closing cost tax deductible? I live in the state of Indiana? What am I to expect?

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dpeezy is right - contact a tax preparer - preferably someone that is experienced in their field. Yes there are more deductions than mortgage interest and yes you get some closing costs that are tax deductable - but have a professional go through it rather than rely on consumers comments on a public forum. 

[DallasLoanGuy]

get your hud1 closing statement to the cpa.

per my cpa, points and prepaid interest are what we are deducting on my taxes(i bought this year).... we are deducting no other closing costs.

[dman23]

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@neptunejcw wrote:
I just closed on my house last September 2015 with a FHA loan. This is my 1st house & tax season is here, what are some things that can be written off besides mortgage interest etc..is any of my closing cost tax deductible? I live in the state of Indiana? What am I to expect?

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As a CPA I can tell you that most of the closing costs are either nondeductible or added to basis. The only items currently deductible as itemized deductions on your income tax return are your share of real estate taxes paid at closing (if any), points (also known as loan origination fee or loan discount, prepaid interest, and PMI (all, part, or none of your PMI is deductible depending on your Adjusted Gross Income).

That's all she wrote. Based on my experience there's a misconception that all closing costs are deductible.

Don't forget that since you closed in September you won't reap the full benefits of your mortgage interest and real estate tax deductions as you haven't had a full year of paying these costs.

Best of Luck in your new home!

[neptunejcw]

Will the upfront pmi that you pay on a fha loan be tax deductible also?

[dman23]

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@neptunejcw wrote:
Will the upfront pmi that you pay on a fha loan be tax deductible also?

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They are. However, you must allocate the premiums over the time the insurance coverage is in effect. You can deduct the premiums over the term of the mortgage or 84 months (whichever is shorter). In most cases it will be 84 months.

The mortgage insurance premium, which was set to expire in 2015, has been extended through 2016. We'll have to wait and see if Congress extends it again.

[neptunejcw]

My.mortgage was sold the 1st month after I closed. I received a 1098 from the original company but it only shows 1 month of interest, will I receive another 1098 from the new company who currently services my mortgage?

[StartingOver10]

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@neptunejcw wrote:
My.mortgage was sold the 1st month after I closed. I received a 1098 from the original company but it only shows 1 month of interest, will I receive another 1098 from the new company who currently services my mortgage?

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yes