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Got married in February this year, changed fed w/h to married with 1 exemption plus additional $50 per pay period ($1300 additional withholding). Husband has not changed fed w/h from single and none. Bought first house in June.....I sold stock acquired in divorce settlement to use as part of downpayment (exh bought stock in 1995), and also sold stock out of IRA ($10K - had stock since 1993 or so) to use for part of downpayment. Husband also took loan out of company 401(k) for rest of downpayment. Mortgage interest should be about $4000 for 1999. No children.

1. would it be best to itemize?
2. are closing costs deductible if we itemize?
3. what else is deductible if we itemize - inspection costs, stock commissions paid when sold stock for downpayment, taxes associated with IRA early withdrawal?
4. if we don't itemize, what do we stand to lose or gain?
5. how do we establish the cost basis for the stocks I sold - is it the day the exh bought the stock initially or is it the day I acquired it? This answer will more than likely affect the capital gains because I sold the some stock higher than purchase.

Fool Featherston
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