Closing costs, including appraisal fees are not tax deductible but
may increase the cost basis of your home which may benefit you in the event of
sale. Other non deductible closing costs are:
- Attorney fees in connection
with obtaining property
- Commissions
- State stamp taxes and transfer
taxes
- Tax service fees
- Title policy fees or title
insurance
- Miscellaneous abstracts of
title, surveys, recording of deed
However, for a new loan or refinance, mortgage
interest paid (including origination fee or "points"), real estate
taxes, and private mortgage insurance (subject to limits) are deductible.
On a refinance, you may need to amortize
an origination fee (if paid) over the life of the loan. TurboTax will walk you
through this process.
Enter
the above expenses in the following areas:
Mortgage interest paid: Federal
Taxes>Deductions &Credits> Your Home, select Mortgage Interest, Refinancing, and Insurance
Points (or Loan
Origination Fee): Federal Taxes>Deductions &Credits> Your
Home, select Mortgage Interest and Refinancing, and Insurance- (See Did you pay points in 2016 when
you took out the loan?) page
Real Estate Taxes: Federal
Taxes>Deductions &Credits> Your Home>Property Taxes
Mortgage Insurance: Federal
Taxes>Deductions &Credits> Your Home> Mortgage Interest, Refinancing, and Insurance
Some of the above expenses may be designated on your
HUD-1 settlement statement.
See
What Information Do I Need From My HUD Statement
