Closing Cost Deductions for 2022

[rmtorres1224]

We bought a condo in March 2022. With all the cost of buying a home are we able to deduct?

Our Monthly payment will include:

Principal & Interest 

MMI/PMI Insurance

Escrow for Taxes

Escrow for Hazard Insurance

Are we able to deduct some or all of these monthly fees?

CLOSING COST DETAILS

Also, there were a lot of other fees and cost are we able to deduct?

LOAN COSTS

Origination Charges Include:

2.767% of Loan Amount (Points)

Processing Fee

Underwriting Fee

Services Borrower Did Not Shop For Include:

Appraisal Fee

Credit Report Fee

HOA Certification Fee

Services Borrower Did Shop For Include:

Title – Abstract Fee

Title – Closing Protection Fee

Title – Document Preparation Fee

Title – Electronic Recording Fee

Title – Endorsement 8.1

Title – Endorsement 9

Title – Escrow Fee

Title – Lenders Title Insurance

OTHER COSTS

Taxes & Other Government Fees

Recording Fees that Include Deed & Mortgage Recording Fees

Prepaids

Homeowners Insurance Premium

Prepaid Interest ($26.79 per day from 03/16/22 to 04/01/22)

Other

Real Estate Transaction Coordination Fee

Thank You all for your help with this, it gets a bit overwhelming when you think about it! Thanks Again for your help!

@deductions 

[MonikaK1]

If the condo you purchased will be your personal residence, you can only deduct mortgage interest and real estate taxes. You can also deduct mortgage interest and taxes on a second home. The other charges that appeared on your escrow closing statement can be added to the purchase price of the property and would reduce any taxable gain when you sell the property.

There are limits to the amount of mortgage interest and taxes that can be deducted under current law. TurboTax will prompt you for the information needed to calculate any limitations.

If the condo is used as a rental, you can deduct such recurring expenses as homeowners' association dues, utilities, and insurance but you would still add the expenses related to purchasing the property to the basis (the total cost of the purchase).

See this TurboTax article for more information, including the treatment of points.

[Mike9241]

mortgage insurance premiums may be deductible

A mortgage insurance premium deduction is only available if all of these are true:

You paid or accrued premiums on a qualified mortgage insurance contract issued after Dec. 31, 2006.
The mortgage is acquisition debt for a qualified residence (a new mortgage).
You itemize your deductions.
However, even if you meet the criteria above, the mortgage insurance premium deduction will be:

Reduced by 10% for each $1,000 your adjusted gross income (AGI) is more than one of these:
$100,000
$50,000 if married filing separately

all points paid are deductible unless rental property 

for real estate taxes that are escrowed only amounts withdrawn from escrow to pay the taxes are deductible and for the first time, you have to reduce this amount for any closing credit you received for taxes that accrued during the period the previous owner owned the property.  if there is a charge on the closing statement for real estate taxes read the description, the previous owner may have prepaid the taxes for a period after the sale and you are being charged for this, you get to deduct this amount