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If you are the buyer, it increases the selling price and may reduce your capital gains tax when you sell, but it is not an immediate deduction.
If you are the seller, it decreases the selling price and may reduce your taxable capital gains, but it is not an immediate deduction. The subsidy was never included in your taxable income, and you can't deduct something from your income if it was never included in your income in the first place.
The subsidy repayment is not deductible, but you may have to pay a recapture tax on a federally subsidized mortgage. This may apply if you sold your home during the first nine years after you received a federally subsidized loan. You can learn more here: Form 8828 Recapture of Federal Mortgage Subsidy
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