2007-03-24 02:02:21 · 7 answers · asked by phtmnbagz 1 in Business & Finance ➔ Taxes ➔ United States
No.
Only interest, points and property taxes are deductible.
Most of the "fees" paid when closing on a house are not deductible.
2007-03-24 02:06:30 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
Some are.
Points are. Points or "prepaid interest", are deductible in the year paid.
Intangible Taxes are. Intangible taxes are created when transfer of properties between buyer and seller take place. These taxes can either be claimed as a
deduction or can be included in your closing cost and therefore be capitalized.
All other closing costs that are directly associated to the real estate, ie., title fees, transfer fees, etc., are capitalized or increase the purchase price of the home. Closing costs associated with the mortgage usually can be "amortized" or depreciated over the life of the new mortgage.
2007-03-24 13:40:34 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋
Points and prepaid interest are deductible. Those should show up on the Form 1098 form the lender so make sure you don't take a double-dip on that!
Points on a re-fi ARE deductible but must be spread out over the life of the loan. If the loan is retired early either with another re-fi or a sale, you can take any remaining points at that time.
The remaining closing costs (except escrow deposits for property taxes and insurance) are added to your cost basis and will reduce your gain when you sell. If you have a taxable gain at sale time they will reduce your tax then.
2007-03-24 09:45:26 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Interest and property taxes are deductible in the year they're paid, on your federal return, if you itemize. Points are also deductible in the year of payment on a home purchase, but not on a refinance - on refi, the points have to be spread out over the life of the loan. The rest of closing costs aren't deductible whether it's an original mortgage or a refinance.
Deductibility on state returns varies by state, since each state has its own laws. In PA, for example, none of the above is deductible.
2007-03-24 09:36:48 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Points and Origination Fees are the only part of closing costs that are deductible from State and Federal Income Taxes. Pre-paid interest, and real-estate taxes which are paid at closing are also deductible from your State and Federal Income Taxes.
2007-03-24 09:12:55 · answer #5 · answered by lazykins 4 · 1⤊ 1⤋
Only at such time as you sell your home, and this would be against any capital gain.
good luck
2007-03-24 11:39:37 · answer #6 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
Yes.
2007-03-24 09:06:17 · answer #7 · answered by ed 7 · 0⤊ 3⤋