I refinanced home (signed papers on 12/31/16)took out $150,00 for adding an addition on to house. what am I able to deduct ?
Generally, when you refinance your main home or a second home for personal use (such as vacation property or a cabin), you can only deduct points over the life of the loan. You'll need to take the itemized deduction.
Mortgage interest, real estate taxes, and private mortgage insurance may also be deductible if you itemize. Other typical closing costs on a refinance (appraisals, underwriter, attorney, or bank fees, title search, etc.) are not deductible.
We'll ask about your refinancing expenses when you go through the "Your Home" area in the Deductions & Credits section.
Now, if you refinanced rental property, there's a lot more you can deduct. Read more