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My wife and I bought our first house in February, 2016. We used a conventional loan to acquire the property.

Now (March, 2016) I am preparing a tax return statement for 2015 year. I haven't made any scheduled payments towards our mortgage loan except of the initial down payment.

Is there anything that I can do now or report in my current tax return statement to:

  • increase the amount returned?
  • get a tax break?
  • somehow reduce my payments towards loan interest?
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    2015 is over. The purchase this year is irrelevant. You can deposit to an IRA, and possibly deduct it. If you are self employed, and already opened a Solo 401(k), you can still decide to make a deposit for 2015. Not much else comes to mind. – JTP - Apologise to Monica Mar 4 '16 at 0:49
  • @JoeTaxpayer yeah. That's what I thought. So, this acquisition should be reported next year, when I prepare tax return statement for '16, right? – Igor Soloydenko Mar 4 '16 at 1:05
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    Sure. Then you get interest and property tax deductions. Most other costs get added to basis. – JTP - Apologise to Monica Mar 4 '16 at 1:10
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    In many states, property taxes for 2015 will be due in 2016. If you live in such a state, you should have received a credit on your settlement statement for the 2015 taxes well as for Jan-Feb 2016. So, set this money aside to pay these taxes when they come due. – Dilip Sarwate Mar 4 '16 at 4:14
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No. How could you? Your return covers the events of 2015.

There was a point of time where under certain conditions, the Federal first time buyers credit could have been claimed on a prior year. But that time has passed, together with the first time buyers credit.

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  • > How could you? I don't know. In some countries the fact that you acquired property automatically lets you request for a tax return/refund. I don't know the US laws well and this is exactly why I asked my question. Sorry if it sounded silly. – Igor Soloydenko Mar 4 '16 at 19:54
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Managing your finances can occur in one of two ways: cash basis and accrual basis.

Accrual Basis is used by many corporations especially those who do not follow GAAP. This allows a company to expense an item when they use it instead of when the cash actually changed hands. For example: a company buys something in late 2015 and uses it in 2016 then it is a Prepaid expense in 2015 and actually expensed in 2016.

Cash Basis is what normal people use and what is required by the IRS. Whenever you spend or receive cash, that is when you get to deduct or get taxed for it. So anything that happened in 2015 is what you get to put on your taxes. A good example of this is getting a paycheck for two weeks of work, the last week of December 2014 and the first week of January 2015. Since the paycheck came in 2015, all of that paycheck is reflected on your 2015 taxes even though you were being paid for work in 2014.

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