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Fees and Closing Costs (settlement fees) are added to the basis of your home and not a deduction per se like mortgage interest or property taxes. See the information below.
Yes, mortgage Interest on a construction loan may be tax deductible if you itemize and meet the IRS loan limitations. TurboTax will determine how much you may be able to deduct.
If you sold a qualified home, you can make deductions up until the time you sold your home, which includes mortgage interest, mortgage insurance, points and real estate/property taxes. You should be able to see these on the 1098 from your lender.
You can also deduct:
Some settlement fees and closing costs you can include in your basis are:
• Abstract fees (abstract of title fees),
• Charges for installing utility services,
• Legal fees (including fees for the title search and preparing the sales contract and deed),
• Recording fees,
• Survey fees,
• Transfer or stamp taxes, and
• Owner's title insurance.
Look at Selling Your Home by the IRS for more in-depth information.
If I went to settlement on my lot in 2018 to build my new house, can I deduct the closing costs on my 2019 tax return since I obtained a construction loan in 2019?
No they are never deductible ... they add to your cost basis as the answer above your post ....
Fees and Closing Costs (settlement fees) are added to the basis of your home and not a deduction per se like mortgage interest or property taxes. See the information below.
Yes, mortgage Interest on a construction loan may be tax deductible if you itemize and meet the IRS loan limitations. TurboTax will determine how much you may be able to deduct.
If you sold a qualified home, you can make deductions up until the time you sold your home, which includes mortgage interest, mortgage insurance, points and real estate/property taxes. You should be able to see these on the 1098 from your lender.
You can also deduct:
Some settlement fees and closing costs you can include in your basis are:
• Abstract fees (abstract of title fees),
• Charges for installing utility services,
• Legal fees (including fees for the title search and preparing the sales contract and deed),
• Recording fees,
• Survey fees,
• Transfer or stamp taxes, and
• Owner's title insurance.
Look at Selling Your Home by the IRS for more in-depth information.
Any costs that would be tax deductible are only tax deductible in the year they are actually paid. On an empty lot, the only costs that are tax deductible are your property taxes. Many of your other closing costs add to the cost basis but are never deductible.
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