Can I deduct closing costs on a 2nd home?

[KarenJ · Accepted solution]

The prepaid property taxes and prepaid interest are deductible for a second home.  If you paid points for a second home, the points can only be deducted (amortized) over the life of the loan.

The remaining closing costs are not deductible however they should be added to the cost basis of the home.

[QuickElbows]

Where on the tax return would I enter the amount for amortized points (spread over the life of the loan) ?