Buying A House And Taxes May 2026

: 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

: 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 buying a house and taxes

: Many lenders require you to pay a portion of your annual property taxes each month as part of your mortgage payment to ensure they are paid on time. Long-Term Tax Considerations : If you "bought down" your interest rate

: 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. Long-Term Tax Considerations : These are calculated based