Tax questions

April 03, 2000

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Aside from points paid, are there any other deductible expenses for the first-time homebuyer filing for in the year of purchase?

Purchasers of a principal residence are generally entitled to deduct points and loan origination fees, even if they are paid by the seller. Another possible deduction is real estate taxes shown on the settlement sheet, HUD Form 1, as taxes paid in advance by the seller of the property. Interest paid at settlement is also deductible, but it will usually be included in your year-end Form 1098 that your lender uses to report mortgage interest payments.

Richard B. Kierson, CPA, Sheldon Kramer & Associates

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

Selected questions will be answered in the Business section. No questions will be answered personally.

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