Tax Q: Has anyone written off their closing costs?
Elizabeth
Posted:
Member since
Tax Q: Has anyone written off their closing costs?
Someone that my DH works with said the he wrote off his closing costs on his tax return (amortized them). I told him I am pretty sure that is not possible. Has anyone done this or heard of this being allowed????
Fran M
Posted:
Member since
Re: Tax Q: Has anyone written off their closing costs?
I was wondering about this myself. I may have to go to an accountant this year. know you can take points as a deduction and maybe that good old NYS mortgage tax. I am not sure about the legal fees.
Jenn P
Posted:
Member since
Re: Tax Q: Has anyone written off their closing costs?
Your mortgage interest, real estate taxes, and points are deductible. Some of a buyer's closing costs consist of taxes reimbursed to the seller (since they're paid in advance you'd always owe them something) and interest paid up front. Those two should all be deductible so maybe that's what he meant. I don't know much about points but I'm almost positive those are paid in full at closing and should also be deductible.
I thought the mortgage tax was not deductible but I could be wrong.
karen32
Posted:
Member since
Re: Tax Q: Has anyone written off their closing costs?
any points you pay at your closing are deductible. you also have your usual deductions - interest, real estate taxes, etc.
i have never heard of attorney's fees being deductible.
Charly
Posted:
Member since
Re: Tax Q: Has anyone written off their closing costs?
Neither mortgage tax nor attorney fees are deductible.
As the others have mentioned - mortgage interest, real estate taxes and points paid at closing are deductible.
Fran M
Posted:
Member since
Re: Tax Q: Has anyone written off their closing costs?
No mortgage tax deduction I was hoping to get that one in as a state tax. Is it considered a trasfer tax vs. property tax? Thanks for the information.
papabear
Posted:
Member since
Re: Tax Q: Has anyone written off their closing costs?
Posted by Jenn P
Your mortgage interest, real estate taxes, and points are deductible. Some of a buyer's closing costs consist of taxes reimbursed to the seller (since they're paid in advance you'd always owe them something) and interest paid up front. Those two should all be deductible so maybe that's what he meant. I don't know much about points but I'm almost positive those are paid in full at closing and should also be deductible.
I thought the mortgage tax was not deductible but I could be wrong.
Correct. Points can be funny but usually points paid for homes in NY are deductible.
Aside from the ones jenn listed, most other costs are included with the purchase price to make up your cost basis in the home which will not come into play for deductibility purposes until you sell the home, and even then, only if you fall outside the tax exclusions.
Go to www.irs.gov and in the search field for Forms and Publications, type in the number 530 - this will take you to publication 530 which is called Tax Information for First Time Homeowners.
I am a tax accountant, though I usually dont deal with individual tax returns.
