English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

I have read both publications 936 and 530 from the IRS on this. I see where closing costs are included in the basis of the home when you buy it but what about when you refinance? Is it deductible then and if so, where does it go on the tax return?

2007-03-02 12:43:00 · 7 answers · asked by Michelle 4 in Business & Finance Taxes Other - Taxes

7 answers

It would be reported on the Schedule A. you must Itemize your deductions rather than taking the Standard Deduction in order to claim the qualified expenses on your Tax return

The only things allowed are Mortgage Interest , Points ( on a refinance it has to be split up for the life of the loan) and Real Estate Taxes , all other costs become part of the basis


http://www.irs.gov/publications/p936/ar02.html#d0e1320

2007-03-02 13:39:32 · answer #1 · answered by Anonymous · 1 0

Only a few of the closing costs are deductible even on the original purchase - interest, points and real estate taxes. Interest and real estate taxes, if any, are deductible on a refinance too, but points are not.

They would go on schedule A as interest and taxes, and can only be used if you itemize.

2007-03-03 04:53:05 · answer #2 · answered by Judy 7 · 0 0

any balance of points you had from the original purchase can be fully deductible when you refinance, if you paid points on the refinance, they must be spread out over the life of the refinanced loan

2007-03-02 14:04:10 · answer #3 · answered by stuart 3 · 1 0

Sorry but the IRS doesn't give you anything for refinancing. The only things you get are your real estate taxes and interest on the mortgage which are reported to you. These you get anyway.

2007-03-02 12:52:41 · answer #4 · answered by Margaret K 3 · 0 2

maximum last expenses at the instant are not deductible. the only deductible products are pastime, supplies taxes and factors. in case you refinance, back the factors are deductible, yet no longer multi function twelve months. you could desire to unfold them out over the existence of the deepest loan.

2016-10-02 07:15:01 · answer #5 · answered by federica 4 · 0 0

Unfortunately, refinancing costs are not tax deductible. Just home mortgage interest you pay for the year.

2007-03-02 13:40:04 · answer #6 · answered by Fool in the Rain 6 · 0 2

nope.

2007-03-02 12:49:22 · answer #7 · answered by Anonymous · 0 0

fedest.com, questions and answers