We just closed on our first home this week, and want to get a start on figuring out what deductions are out there for first-time homeowners.
There are certain itemized deductions associated with home buying and ownership. The big deductions are the home mortgage interest deduction, which allows you to deduct the interest portion of your mortgage payments, and a deduction for real estate taxes. These would be included on your Schedule A. There is also the first time homebuyer credit, which will likely be very advantageous for you. There are caveats and limits on the items listed above, so it would be a good idea to consult a tax attorney or CPA. Additionally, you could read up on the following Publication: http://www.irs.gov/pub/irs-pdf/p530.pdf
Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein. Attorney-Client Relationship Disclaimer: This email does not create an attorney-client relationship between sender and any receiver.