The Closing
- Introduction
- Before the Closing
- Home Inspection
- Sample Closing Costs for Items Paid by Buyer
- The Closing Timetable
- Loan Closing Checklist
- Tax Documentation
Tax Documentation
Once you officially become a property owner, you should keep good records for tax purposes. As we discussed previously, owning a home is one of the last middle-class tax shelters. Your closing documents contain valuable tax deductions. Make sure you save an extra copy of your closing statement for your tax accountant. Here's a quick summary of what's deductible and what's not:
Deductible
- real estate taxes paid by you at closing
- interest expense paid by you at closing
- points paid (subject to some limitations)
Non-Deductible
- homeowner's insurance premiums*
- water and sewer charges*
- prorated oil or other utilities*
- other expenses of a personal nature*
Other items on your statement may add to the tax basis of your home. Some of these items are:
- brokers' commissions
- attorneys' fees
- recording fees
- title search and survey
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Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.