Yes. Almost no closing costs incurred on the sale or purchase of a residence are deductible. Instead they are added to the cost or purchase price for a future sale to help reduce any gain on the sale for tax purposes.
- Exceptions:
- Mortgage Interest if not included in the Form 1098 total for the year. This may occur if the mortgage was sold to a different lender after a purchase. (Buyer)
- Prorated portion of real estate taxes (both buyer and seller will have their portions in the year of sale/purchase)
- Points, if applicable
All other closing costs such as Title fees, real estate commissions, document recording fees, and legal fees, will be added to the purchase price of the residence for the buyer.
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