IRS and Sellers
This link takes you to the IRS publication which provides tax information for homeowners. Your home may be a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer that contains sleeping space and toilet and cooking facilities. The following topics are covered in this publication at this link.
- How you treat items such as settlement and closing costs, real estate taxes, sales taxes, home mortgage interest, and repairs.
- What you can and cannot deduct on your tax return.
- The tax credit you can claim if you received a mortgage credit certificate when you bought your home.
- 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.