Re: Taxes

On Tue, 18 Nov 2003 21:16:56 -0700, someone wrote:


>>I'm a newbie with a possibly stupid question. My wife and I are 
>>closing on our first home this month. Can you give me an idea how 
>>much more complicated our taxes will be because of this, come 
>>April? 

This is one of the most common tax situations in the US.  Any
competent tax software package should be able to lead you through it
step by step.  Millions of people buy houses.  There is often a nice
tax savings.  It is not that complicated.  Millions of people do it. 


BTW, since it is not a business property, "house related receipts"
probably are not much good at all.  You can't deduct your own costs of
operation or maintenance.  Capital improvements can be added to your
cost basis for the asset so that when you sell, the capital gain would
be less, but it probably won't ever matter as capital gains on sale of
one's own home get deferred and then exempted for most people.  Even
if you want to do this, personally I only bother for big stuff, like
adding a garage or an addition, not little marginal stuff.

Do not obsess and speculate and make this harder nthan it is.  Start
your taxes in February when the paperwork comes in, and see if it is
too hard for you, if it is, then you have plenty of time to get help.
But it probably won't be. 

--v.