If we bought the house this year and then refinanced within the year (for a rate reduction only); do we get to use both settlement figures for the tax deductions? I know there are certain allowable deductions when purchasing or refinancing -- but can they both be used in same year's taxes?
2007-11-13 08:36:39 · 3 answers · asked by Goddess 5 in Business & Finance ➔ Taxes ➔ United States
You can use any deductible items from both closings. But most closing costs aren't deductible - Wayne has detailed how the points are treated. In addition, if there were real estate taxes paid at closing (there might be on the first one) those would be deductible along with any interest.
2007-11-13 13:56:21 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Points paid when purchasing are deductible in the year paid.
Points paid when refinancing are deductible over the life of the loan.
Most other closing costs are not deductible.
2007-11-13 08:47:40 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋
Yes you do.
2016-05-23 00:59:12 · answer #3 · answered by karin 3 · 0⤊ 0⤋