What is tax deductible when purchasing a home?

Question

On the closing costs, there are so many fees. What are tax deductible?

Answer 1

The points paid at settlement and the interest adjustment for the date of settlement through the first payment date will be shown on the form 1098 that the mortgage company sends to you. Depending on the settlement date you could have an adjustment to the real estate taxes you paid. The adjustment is shown on page one and it will either increase the amount due from you or reduce the amount due you. If it increases the amount due you deduct it and if it reduces what you owed at settlement you subtract it from the taxes you paid.
All other costs on the settlement sheet become part of your cost and you will subtract that from the eventual sale price to determine your gain at that time.