Congratulations! Your home is SOLD. Upon close of escrow you should have received a document called the Closing or Settlement Statement. It includes an itemization of all your debits and credits from your transaction and is of particular importance during tax preparation as some expenses may be considered tax deductions. These potential deductions apply if you sold a home, bought a home or refinanced your primary residence. Some of the items generally considered to be tax deductible include:
- Any of your paid real estate taxes
- Your paid loan origination fee
- Private mortgage insurance cost
- Any prepaid mortgage interest
If you don’t have this document handy, contact your real estate agent. It is important to seek advice from your tax attorney and/or your accountant to be certain about your eligible deductions. Unfortunately we are all faced with two unavoidable givens: taxes and death, but the deductions may make April 15th a little less painful.