Upcoming Foreclosures

HUD 1 Tax deductions for property using Turbo Tax?

I purchased a home last year and am using Turbo Tax (Home & Business) to file my taxes. My first question is what line items from my HUD 1 are tax deductible? Second question is will Turbo Tax prompt me for these or how are these entered in it? Last question is are repairs or upgrades that were done to the home prior to moving in tax deductible? (The home was a foreclosure but most of the changes were improvements). Will it prompt me for a specific line item or how will I know what to enter where?

Public Comments

1. Turbo tax will prompt you. Upgrades,repairs and improvements are NOT deductible on your tax return Those costs go toward capital improvements and increase the cost basis of the home when you sell.