home ownership and taxes, what you need to know

Whether your home is a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer that contains sleeping space and toilet and cooking facilities, there are things you should know about home ownership and how it affects your taxes.

Things like how you treat items such as settlement and closing costs, real estate taxes, sales taxes, home mortgage interest, and repairs. There are items related to buying, selling, moving, and owning a home that you can and cannot deduct on your tax return.  

You should understand why you should keep track of adjustments to the basis of your home. (Your home's basis generally is what it cost; adjustments include the cost of any improvements you might make.) What records you should keep as proof of the basis and adjusted basis, and what records you should keep in general.

To learn about how buying a new home and moving affect your taxes, and many other major life events, check out the IRS website resource: Managing Taxes After A Life Event.

IRS Publication 530, Tax Information for Homeowners, contains a wealth of information for home buyers, sellers and homeowners in general.

Of course, you should always consultant your tax accountant for any questions or for assistance filing your tax return.