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Deductions & credits
Yes, you can apply appropriate closing costs to 2020.
However, you can’t completely deduct all the costs of closing on your property. Only a few eligible ones make the cut. The IRS denotes the following as deductible costs:
- Sales tax issued at closing
- Real estate taxes charged to you when you closed
- Mortgage interest paid when cost was settled
- Real estate taxes that were paid for by the mortgage lender
- The interest you paid at the house’s purchase
- Loan origination fees (a.k.a. “points”). These would be written as a percentage of the borrowed money.
Additional closing costs that are not deductible include:
- tax stamps,
- attorney fees,
- title insurance,
- title search and
- document preparation fees.
None of these closing costs are deductible on your federal income tax return.
However, those costs can be included in your cost basis when selling your home.
From <https://turbotax.response.lithium.com/console/agent/5846641?>
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February 21, 2021
8:45 AM