When purchasing a house, are the closing costs tax deductible?

Question

Last year I bought a home. I know the interest and taxes may be deductible. A friend told me that the closing costs were also deductible. Is this true?

Answer 1

Points
Mortgage Interest
Property Taxes
those are the only thing on your closing statement that can be used to Itemize your deductions


Publication 530
http://www.irs.gov/publications/p530/index.html
Publication 936
http://www.irs.gov/publications/p936/index.html

Answer 2

Points paid for the mortgage are deductible although they should be on the Form 1098 you get from the lender.

Prepaids such as impounds for taxes and homeowner's insurance are just deposits against future expenses and are not deductible.

Property taxes credited to the seller are considered paid by you in the year of closing and are added to any other property taxes you pay in the year of closing. Property taxes credited to you from the seller are paid on behalf of the seller and should be subtracted from any other property taxes you pay in the year of closing.

Other closing costs such as mortgage application fees, title searches, title insurance, closing agent's fees, recording fees, courier fees and the myriad other "junk fees" charged are all added to your cost basis and will reduce your gain when you sell.

Answer 3

No... regardless of the deductibility of abode procuring... in line with danger in admire to proportioned sources tax... Your daughter made the pruchase. If there are any deductions to take, they may well be hers. On suited of that, in case you proficient her greater desirable than $12,000 you will have present tax ramifications. Oh yeah. bypass Huskers!

Answer 4

The closing costs are deductible as well as every expense in investment real estate. You can count your home as an investment and get the same write-offs the Republicans have been doing for some time which they call "Loop Holes". And the Democrats are too busy working for the "Masses" to educate us on taxes.

So if you want to be rich, you got to be a Republican, but I don't know anyone who is rich enough to be Republican. The whole point of this factual opinion is that you asked how to save money on closing costs being tax deductible, and anyone asking about taxes is asking to be rich. Now if you want to be rich, you must now go around and say the house you live in is a primary investment choice in my Billionaire Portfolio System .

If you want to come where the grass is greener and lushier, than send 1 Buck (Whitetail Preferred) to your best friend right away. Then sell your house and invest all the proceeds in liquid gold, which on the commodities market is known as Ethanol. Wait 8 months than cash out and buy silver. Wait 2 months and buy construction equipment. Sell equipment in the next big building boom which is 18 months away. Sell the equipment 3 months into the building boom. Go buy water rights. Sit on them for the next 1000 years. Become one of America's newest royalty families. Build a mansion on the lands adjacent to the water rights.

Answer 5

Only if it is a 'business property'...either a rental or a property wholly used for business purposes. Even then, the closing costs would not be currently deductible but considered assets to be deducted (depreciated/amortized) over time (27.5 or 39 years for the building and over the term of your loan for financing costs).