WP_Post Object ( [ID] => 28247 [post_author] => 456 [post_date] => 2017-09-18 21:00:31 [post_date_gmt] => 2017-09-18 21:00:31 [post_content] => Editor’s Note: Whether you are thinking of saying “goodbye” to rental life, completing your house hunting journey, or a recent real estate buyer – here are some key tax tips that apply now and in the future. There are many factors you will look at when purchasing a new home including affordability, location, size, and even what your favorite HGTV star's opinion may be. There are other important things that will apply to any new purchase. First of all, your taxes will be affected. Secondly, you will receive a ton of paperwork. In that pile of papers, there will be one document that should stand out above the rest – the Closing Disclosure. Here’s what you need to know.
Protect Your Closing DisclosureUnless you are buying your house with cash or receiving it as a gift, you will receive a Closing Disclosure during the process of buying a home. The Closing Disclosure is commonly used for this purpose. DO NOT THROW THIS AWAY. This statement functions much like a receipt for the purchase of your home. You will also see that it itemizes all charges agreed upon during negotiations plus other closing expenses.
Details of the Closing DisclosureThere are many items listed on the Closing Disclosure. Some are added to your home’s basis (cost), which is important when you sell the house. Some things are immediately tax deductible or deductible over time, which is important when preparing a tax return. Other items listed will not benefit you (tax-wise) at all, other than facilitating the property sale. The Closing Disclosure (unlike the old HUD-1) also contains the key terms of your mortgage agreement with the lender. You should check that these are correct when the Closing Disclosure is received. Included are the loan amount, interest rate, and loan term. Another key area to check for are loan disclosures. This provides information for future items you will need to know for the loan. Examples include how late and partial payments are handled and if insurance & taxes are included as part of the mortgage payment. If any of the loan information is not described correctly, you should immediately contact the lender.
Getting Down to the "True Cost" of Your HomeThe purchase price of your home is not necessarily the initial price tag. Your basis in the home, which reduces the capital gains of its future sale, may be much different than you think. The following items are some of the settlement fees or closing costs possibly included in your Closing Disclosure, and are actually included in your basis for the purchased home:
With H&R Block Tax Pro Review, an H&R Block certified tax pro will review your taxes prior to you filing your return to ensure that you get your maximum refund guaranteed.