Can I claim closing costs, origination fees on the purchase of a new home in 2006? The move was for a new job

Question

We purchased a home Jan 2006 because of relocation w/ a job. The move was 850+ miles. Can I deduct things like the interest from (22 days), county property tax and school taxes (included in the closing costs - because this was new construction), attorney's fees, etc. Please help.

Answer 1

None of that is deductible as a moving expense. The rules are very specific on that.

The property taxes, prepaid mortgage interest and points are deductible if you itemize. The interest and points should be listed on the Form 1098 you got from the lender so make sure you don't take a double deduction.

Any prepaids for homeowners insurance or property taxes have no tax consequences, they're just deposits against future bills.

The remaining closing costs (attorney's fees, title insurance, etc.) are added to your cost basis and will reduce your gain when you eventually sell.