I have listed out the closing costs/settlement charges that would be deductible on your return. You can find the settlement charges listed out on your Settlement Statement/HUD1.
The
closing costs that 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, transfer taxes, flood
certificate, attorney fees, etc. are not deductible, but are added to the cost
of the property.
