: If you "bought down" your interest rate by paying points at closing, these are often fully deductible in the year you paid them, provided they meet specific IRS criteria. Ongoing Costs to Budget For
: When you eventually sell your primary residence, you may be able to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from your income, provided you lived in the home for at least two of the five years before the sale. Find more details on IRS Topic No. 701 . buying a house and taxes
: These are calculated based on your home's assessed value multiplied by local tax rates. It is highly recommended to check your specific County Assessor's website to estimate these costs before purchasing. : If you "bought down" your interest rate
: While general maintenance isn't deductible, keeping receipts for major "capital improvements" (like a new roof or addition) can help increase your home's "cost basis," potentially reducing your taxable gain when you sell. Essential Documents to Keep : While general maintenance isn't deductible
: Mailed by your lender annually to report mortgage interest.