I'm with pk - I'm not sure what you're asking. However, as a summary, very few of the costs in the purchase and sale of a personal residence are deductible, and the loss on a residence is not deductible..
Almost
no closing costs incurred on a sale of a residence are deductible. An exception
is any mortgage interest or real estate taxes charged at closing to bring them
up to the closing date. All other closing costs (Title fees, real estate
commissions, documentary stamps, credit report costs, costs of an abstract,
transfer taxes, home inspection, flood certificate, attorney fees, etc. ),
instead of being deductible, reduce the sales price of the property (or
increase the cost if you receive a Form 1099-S.)
On the sale of a personal residence,
reducing the sales price would reduce the gain. However, there may not be any
tax advantage in doing so, as in most instances the gain on the sale of a
residence is wholly or partly exempt from tax anyway.
For the sale of a residence, up to
$250,000 ($500,000 on a joint return where you both lived in the residence) of
gain can be excluded from income if you lived in and owned the house for two of
the last five years.
(You may have a smaller exclusion if
the property was used as a rental during the five year period, and you may have
income from recapture of depreciation if you claimed an office in the home
deduction for the home.)
Most
expenses at closing on the purchase or refinance of a home, second home,
vacation home, timeshare, etc. are not deducted but added to the cost of a new
home. There are a few exceptions - the following would be deductible:
- interest
paid at the time of purchase (the charge at closing would normally be done
for interest up to the date of first payment.),
- real
estate taxes charged to you,
- points
(sometimes called origination fees and expressed as a percentage of the
amount borrowed.) On a refinance
they need to be amortized over the life of the loan or 84 months,
whichever is less, unless the points were used to improve your main home,
and
- private
mortgage insurance costs but, if prepaid, only the amount allocable to
this year based on an 84 month amortization.
Title
fees, real estate commissions, appraisal costs, home inspections, documentary
stamps, credit report costs, costs of an abstract, escrow fees, transfer taxes,
flood certificate, attorney fees, etc. are not deductible, but are added to the
cost of the property.
