Moving

• New home buyers can deduct 100 percent of their moving expenses by filing Form 3903 if they moved due to a change in the location of their job or employment at a new job. To qualify, the new job location must be at least 50 miles from the home buyers' former tax address, and they must have performed full-time work at the new job or location for 39 weeks immediately following their move. The self-employed must work a total of 78 weeks full time for at least 24 months after arriving at their new home in order to deduct moving expenses.
  
  

Mortgage Insurance

• Since most new homeowners cannot afford a large mortgage down payment, their lender will require them to purchase private mortgage insurance (PMI), which provides the lender compensation in the event of borrower default. Homeowners must pay for this insurance until they obtain 20 percent equity in their property, and they can deduct all expenses paid for PMI in a tax year.
  
  

Points

• Mortgage points are upfront sums of interest paid to a lender in order to lower the homeowner's loan interest rate or reduce closing costs. New homeowners can typically deduct all points in the tax year in which they purchase their home. In order for a homeowner to qualify for a full deduction in a single tax year, his loan must be collateralized by his primary residence, and he must pay the points in order to lower his interest rate. If he doesn't meet these criteria or other restrictions, he must deduct a percentage of points each tax year over the lifetime of the loan.
  
  

Interest

• Initial mortgage payments consist mostly of interest. New homeowners will receive a Form 1098, which shows them how much they paid in annual mortgage interest. Their lender will send the form by mail if they paid $600 or more in mortgage interest in a year, as of August 2011. Most homeowners can take a full deduction for all interest paid on a primary or secondary residence.
  
  

Tax

• New homeowners sometimes pay property tax in advance when they close on a property, and they will continue to pay property tax as long as they own their property. New property owners can deduct 100 percent of all local and state property taxes from their adjusted gross income on Form 1040, Schedule A. They must take this deduction for the tax year in which they paid the tax.