ThomasM125
Expert Alumni

Deductions & credits

If it is an investment property, most of the closing costs would be added to the basis and not currently deductible. You could deduct property taxes if they weren't prepaid as itemized deductions in the current year.

 

If it is a second home, you can deduct points or mortgage interest paid at closing as itemized deductions in the current year as well.

 

 

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