I refinanced my home can i deduct the closing cost if they are rolled into the loan

[spedrick]

Taxes were due in December so I'm sure the new bank paid them but they sent me nothing showing this

[Marketstar]

If your lender paid your taxes, they should be able to provide you with some documentation.

[Marketstar · Accepted solution]

No, closing costs, including the below are not tax deductible but may increase the cost basis of your home which may benefit you in the event of sale.

• 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

• Appraisal Fee

However, you can deduct the below even if rolled into the loan:

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:

1.   Mortgage interest paid: Federal Taxes>Deductions &Credits> Your Home, select Mortgage Interest, Refinancing, and Insurance

2.   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

3.   Real Estate Taxes: Federal Taxes>Deductions &Credits> Your Home>Property Taxes

4.   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

[psberg2]

Can you provide a cite for that?  I have this issue as well and have looked all over, without getting a straight answer.

I sold my home in 2018.  I am finally working on the tax return (extension until 10/15) and am very close to the $500k tax free ceiling.  The home was refinanced 5 times during that period and I paid in the vicinity of $2800 per refinance for non-deductible closing costs, primarily title insurance, escrow, and recording fees.  I also had to pay for appraisals each time.  

From your response, I interpret you to be saying that these closing costs can be added to my basis.  If so, what part of TTax would they be entered?  They are not costs I paid when I bought the property, so that doesn’t fit in the TTax box.

[xmasbaby0]

@psberg2 

https://ttlc.intuit.com/questions/3589438-i-refinanced-my-home-what-can-i-deduct