| Author |
Message |
    
1-2many
Citizen
Username: Wbg69
Post Number: 101
Registered: 6-2002
| | Posted on Monday, April 7, 2003 - 10:46 am: |     |
I just ran my state turbo tax programs and after getting over the shock of the numbers I realized the program has a flaw: it does NOT automatically pick up the RE Tax paid paid for both houses, where you sold and bought a house in the same year. the program lists and gives credit for only the RE tax paid at the first house (labelled your "main house"), which is only for that portion of the year that you occupied that house. I believe, though, that the total RE tax paid throughout the year, even though on technically two residences, should be fully credited, as it is your RE tax expense for your primary residence. I find this flaw disturbing, since the federal portion picks up and credits both.
Also, importantly, not all RE tax is reflected on the end-of-year statements that your mortgage lenders send you. Some of the RE tax you paid, you paid at closing, and is reflected on the closing statement. This helps with both federal AND state.
Of course, I am no accountant - anyone who disagrees or has other or additional info, please share. |
ErinS
Citizen
Username: Erins
Post Number: 7
Registered: 2-2003
| | Posted on Thursday, April 10, 2003 - 10:09 am: | |
Great advice 1-2Many. I also sold property in 2002 and had problems finding all the RE taxes I paid and had to go back to the closing paperwork.
Also, you can itemize most of those "fees" you paid for closing costs. I believe the TurboTax Help menu tells you the type of fees you can deduct. |
1-2many
Citizen
Username: Wbg69
Post Number: 112
Registered: 6-2002
| | Posted on Thursday, April 10, 2003 - 10:29 am: | |
thanks for the tip, Erin.
in going over the NJ form some more, I found by "quickzooming" in a section of it, where you are supposed to check a box if you lived in more than one NJ residence. if you answer yes, you are then supposed to fill out taxes for each. this may then automatically fill in RE taxes correctly - the problem is, I don't think Turbo Tax ever asks you this question. (and again, on RE taxes, the closing sheet supplements the taxes reflected on your mortgage lender statements.)
Erin - what fees for your loan were deductible? My understanding is that loan acquisition fees are not deductible, points paid are. Do you have any more thoughts on this? |
njjoseph
Supporter
Username: Njjoseph
Post Number: 1913
Registered: 5-2001
| | Posted on Thursday, April 10, 2003 - 11:10 am: | |
1-2many: I agree, only the points are deductible, generally. In the case of a job-related move, other fees could be deductible.
And here's something I learned recently: points in a refinance are not fully deductible in the year the loan is made; they should be amortized over the life of the loan. |
ErinS
Citizen
Username: Erins
Post Number: 9
Registered: 2-2003
| | Posted on Thursday, April 10, 2003 - 11:09 pm: | |
Sorry I did my taxes in February, so my memory is fuzzy. According to TurboTax you can itemize what they call "Expenses of Sale" which includes; commission, broker fees, legal fees, advertising fees, home inspection, title insurance, transfer taxes, geological surveys, loan fees or other fees paid on the buyers behalf. I'm not sure how this affects your returns, but I itemized that stuff anyway. |
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