Publication 530 - Tax Information For First-Time Homeowners

Publication 530 - Tax Information For First-Time Homeowners - 2002

Publication 530

Contents

Cat. No. 15058K

Important Reminders . . . . . . . . . . . . . . 1

Department

Tax

of the

Introduction . . . . . . . . . . . . . . . . . . . . . 1

Treasury

Information for

Internal

What You Can and Cannot Deduct . . . . . 2

Revenue

Real Estate Taxes . . . . . . . . . . . . . . 2

Service

Home Mortgage Interest . . . . . . . . . . 3

First-Time

Mortgage Interest Credit . . . . . . . . . . . . 6

Figuring the Credit . . . . . . . . . . . . . . 6

Homeowners

Basis . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figuring Your Basis . . . . . . . . . . . . . 8

Adjusted Basis . . . . . . . . . . . . . . . . 9

For use in preparing

Keeping Records . . . . . . . . . . . . . . . . . 9

2002

How To Get Tax Help . . . . . . . . . . . . . . 9

Returns

Index . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Important Reminders

District of Columbia first-time homebuyer

credit. The credit for first-time homebuyers in

the District of Columbia has been extended to

include property purchased before January 1,

2004. For more information about this credit,

see page 2.

Limit on itemized deductions. Certain item-

ized deductions (including real estate taxes and

home mortgage interest) are limited if your ad-

justed gross income is more than $137,300

($68,650 if you are married filing separately).

For more information, see the instructions for

Schedule A (Form 1040).

Limit on mortgage interest credit. Your

mortgage interest credit for 2002 can offset both

your regular tax (after reduction by any foreign

tax credit) and your alternative minimum tax for

the year, if any. See Figuring the Credit under

Mortgage Interest Credit.

Photographs of missing children. The Inter-

nal Revenue Service is a proud partner with the

National Center for Missing and Exploited Chil-

dren. Photographs of missing children selected

by the Center may appear in this publication on

pages that would otherwise be blank. You can

help bring these children home by looking at the

photographs and calling 1 – 800 – THE – LOST

(1 – 800 – 843 – 5678) if you recognize a child.

Introduction

This publication provides tax information for

first-time homeowners. Your first home may be

a mobile home, a single-family house, a

townhouse, a condominium, or a cooperative

apartment.

The following topics are explained.

•

How you treat items such as settlement

and closing costs, real estate taxes, home

mortgage interest, and repairs.

Publication 530 - Tax Information For First-Time Homeowners - 2002

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