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

* These items may be deductible if you are purchasing investment property. Contact your tax professional for details.