How do I report a down payment for a condo?

Q: How do I report a down payment for a condo? I didn't pay any mortgage in 2003 except for the down payment. Is that tax deductible, and where do I report it? —Zsuzsa, Lowell

The following answer was provided by the Mass. Society of CPAs.

A: A down payment on a condo is not deductible nor reported anywhere on a tax return. When you take ownership of the property you may then deduct interest/real estate taxes.

The following answer was provided by Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: Sorry, but a condo downpayment for a personal residence is part of your personal cost of shelter. Deductions are limited to items specified in the tax statutes. For personal residences, those are limited to mortgage interest and real estate taxes. Points paid on a mortgage may, by election of the taxpayer, be deducted when paid, in full, if they are paid to obtain a mortgage to purchase (not refinance) your principal residence. You should keep the documents from the purchase and track the down payment as part of the purchase, along with the costs incurred in the purchase (as well as improvements while you own the condo), siince these may be recovered, tax free, from the sales price, whenever you sell the condo (they would also figure into your depreciation deductions, should you decide to acquire another property to use as your principal residence and convert this condo to a rental).