Hello Carl, thank you for explanation. Most of what you've said I got them, because already knew them.
What I'm looking for is a kind of breaking down with specific line from the closing statement. For example, I read this article that says: "The buyer of a principal residence may deduct interest, loan origination fees (typically referred to as “points,” also note that the IRS allows the buyer to deduct these even if they came out of the seller’s funds) and real estate taxes. The buyer can also increase their basis in the property for amounts paid to attorneys in connection with obtaining the property, commissions, title fees, survey fees, recording of deed fees, pre-sale real estate taxes, back interest owed by the seller and paid by the buyer, transfer taxes, tax service fees, title policy fees, title insurance and utility service installation." ... When I looked on the IRS site, they say :"Items added to basis. You can include in your basis the settlement fees and closing costs you paid for buying your home. A fee is for buying the home if you would have had to pay it even if you paid cash for the home.
The following are some of the settlement fees and closing costs that you can include in the original basis of your home.
Abstract fees (abstract of title fees).
Charges for installing utility services.
Legal fees (including fees for the title search and preparation of the sales contract and deed).
Recording fees.
Surveys.
Transfer or stamp taxes.
Owner's title insurance.
Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions."...
So to wrap it up, when I look on my closing statement which looks like this – <a rel="nofollow" target="_blank" href="
http://files.consumerfinance.gov/f/201207_cfpb_sample-closing-disclosure_no-seller.pdf">http://files...> – I see things under Loan Costs such as (lines where fees are marked paid by borrower and I suspect being deductible but not 100% sure and needed confirmation)
> Origination Charge
A. 02 - Origination Fee
> Services Borrower Did Not Shop For
B. 01 Appraisal Fee
B. 02 Credit Report/AUS
B. 03 Flood Det.
B. 04 Flood Life of Loan Coverage.
B. 05 Mortgage Insurance Paid in Cash (Already reported in 1098)
B. 06 Tax Certification Fee
B. 07 Upfront Mortgage Insurance Premium (Already reported in 1098)
> Services Borrower Did Shop For
C. 01 Title-Abstract or Title Search
C. 02 Title-Deed Prep. fee
C. 03 Title-Express Mail/Courrier Fee
C. 04 Title-Lenders Title Policy
C. 05 Title-Settlement or Closing Fee
C. 06 Title-Title Examination Fee
C. 07 Title-Title Insurance Binder
> Other Costs - Taxes and Other Gov. Fees
E. 01 Recording Fees
-Deed:
-Mortgage:
E. 02 Transfer Taxes to W. Clerck of the C.
> Prepaids
F. 03 Prepaid Interest (Already reported in 1098)
> Initial Escrow Payment at Closing
G. 03 Property Taxes
> Other
H. 04 One time supplemental Tax to W. C Clerk
