can we claim closing costs on our taxes? I usually do them myself but am going to an accountant this year with the house and all this other crazy stuff, and I made a lot more this year, so I am nervous about how much I will be taxed!!
2007-12-28 04:05:23 · 4 answers · asked by birdiegirl 3 in Business & Finance ➔ Taxes ➔ United States
You are limited to the amount of closing costs that include points (interest on loan) and pre-paid taxes (property). All other closing costs are not allowed. Also, if this is a secondary home, the points must be amortized over the life of the loan, and not fully deductible in the year purchased.
Refer to Pub 17 for more detail.
2007-12-28 05:17:50 · answer #1 · answered by Country Boy 5 · 0⤊ 0⤋
Its a rare tax seaon that passes when I don't have at least 1 disappointed client who purchased a house during the year.
The majority of closing costs are not deductible, and are instead added to the basis in your home. Points are deductible, along with any real estate tax and home mortgage interest you paid either at closing or later in 2007.
2007-12-28 12:18:00 · answer #2 · answered by taxreff 7 · 1⤊ 0⤋
Only if you itemized. And not all of the closing costs, just the part that's for mortgage interest and real estate taxes. Points on a new mortgage can be deducted as interest.
2007-12-28 18:07:50 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
IRS publication 530 will spell out what costs become part of your purchase price (basis) and which costs are itemized deductions.
Chances are, if you just bought the house, you will still take the standard deduction this year.
2007-12-28 12:08:26 · answer #4 · answered by Anonymous · 2⤊ 0⤋