As SuperUser bwa
explains:
Most expenses at
closing on the purchase or refinance of a home, second home, vacation home,
timeshare, etc. are not deducted but added to the cost of a new home. There are
a few exceptions - the following would be deductible:
- interest paid at the time of
purchase (the charge at closing would normally be done for interest up to
the date of first payment.),
- real estate taxes charged to you,
- points (sometimes called
origination fees and expressed as a percentage of the amount
borrowed.) On a refinance they need to be amortized over the life of
the loan or 84 months, whichever is less, unless the points were used to
improve your main home, and
- private mortgage insurance costs
but, if prepaid, only the amount allocable to this year based on an 84
month amortization.
Title fees, real
estate commissions, appraisal costs, home inspections, documentary stamps,
credit report costs, costs of an abstract, transfer taxes, flood certificate,
attorney fees, etc. are not deductible, but are added to the cost [basis] of the
property.
Mortgage interest,
refinancing, property taxes and mortgage insurance are all under the Deductions
and Credits tab for "Your Home."
(As there is no
consistency in how closing agents prepare a HUD-1, it would be impossible to
say with certainty which lines those appear on.)
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