Can I deduct loan closing costs paid on a construction to permanent residence loan and 20% cash down payment at the time of closing. Where do I report this information?

[MichaelMc · Accepted solution]

Generally, no. Only interest, points, and PMI on a loan secured by your residence are tax deductible.

A construction loan may be conditionally treated as a mortgage if, on the first day the home becomes available for occupancy, it becomes your primary or second home. In that scenario only, the interest paid on the construction loan during the previous 24 months becomes tax deductible. Similarly, origination fees and points on the construction loan may be deducted.

Pro-rated real estate taxes paid at settlement are tax deductible.

A cash down payment is part of your purchase price of your new home. It is not a tax deductible expense.