house closing after new year

[namaste]

Hi, we have a closing date of Jan.11th. Are there any pros to moving the date up (before year end) or leaving it? Talk to me like I'm 5 please.
Thanks!

[savannah11]

We closed on our house Jan 14. That first week we painted, had a handyman over for a couple of days doing repairs, and had to buy all the miscellaneous things we hadn't thought about. Along with unpacking. It would have been really stressful for us if we'd had to worry about the holidays as well.

[simpsongal]

It's a good time b/c you'll pay a year of interest on the mortgage and a year of property taxes, giving you a larger deduction in 2013. If you closed in December, you probably would not be able to deduct that small amount of interest & taxes from your December payment on your 2012 taxes (unless you are able to itemize for some other reason).

White sales are awesome in January - so that's good. Contractors are also slow, so you may be able to negotiate deals for work on the house. President's Day sales are also around the corner.

[namaste]

Thanks I was thinking as far as closing cost, taxes, and write offs for 2012?

[namaste]

we itemize on our taxes (self employed)

[simpsongal]

Are you able to itemize your 2012 taxes? That is, do you have more deductions and than the standard deduction. Most people do not. I'd be surprised if one mortgage payment and property taxes/interest paid during closing put you over the standard deduction threshold.

I don't think you can deduct closing costs (aside from interest & taxes).

[ondaflipside]

Besides interest and property taxes, you can deduct points. So that may make a difference.

If you purchase energy-saving appliances before the year ends, you can also get tax credits for that.

www.realtor.com/home-finance/real-estate/buyers/year-end-buying-home-benefits.aspx?source=web

Honestly, unless it's a fairly significant amount after your standard deduction, the benefit will likely not going to be that much. I'd rather have it done after the holidays to reduce stress.

[mswax]

No words of advice, just wanted to say congrats!

[namaste]

Thanks guys, I appreciate it!