When does Morgage interest deeiction start ?

I've pruchased my first home in Sept 01

Can I claim deduction for mortgage interest paid in calender year '01 on this year's return ?

Are there any other home buying fees such as, closing costs, downpayments, up front taxes, etc. deductable ?

Sure. If you itemize you can deduct home mortgage interest paid in 2001 on your 2001 return. Such interest is deductible on up to $1.1 million of debt used to buy your principal residence. Also, if you paid points to get your mortgage, that expense is also fully deductible as interest on your 2001 return. You claim the deductions on Schedule A along with your other itemized write-offs.

--kevin mccormally
editorial director
Kiplinger's Personal Finance magazine