I sold my house and escrow closed. However, due to lapse in communication between escrow and real estate agent, I had to pay by my personal check (outside of escrow) to buyer for items needing repairs found in house inspection. I had agreed to pay for this in the selling contract.
Closing costs are never tax deductible. They are added to the cost basis of your house so when you sell it, it will decrease your profit on the sale.
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