It depends. Here is a list of closing costs that can be deducted:
- mortgage interest,
- points, and
- real estate property tax paid at closing.
To record these expenses in TurboTax, along with other mortgage interest/property taxes paid in the year, take these steps:
Within your Federal return (make sure Federal is selected in black column on left side of the screen), select the “Deductions And Credits” tab at the top of the screen. If asked select “I'll choose what I work on” Then scroll to the "Your Home" section. From there you can choose to Start the section on Mortgage Interest and the one on Property Taxes.
Note, that all other costs paid at closing, including transfer taxes, stamps, escrow fees, etc., are NOT deductible on your tax return. In your own notes/files, you can add them to the cost basis of your home and you will get the benefit when you sell.
Here is an article with more information on tax deductions related to home ownership: Home-Ownership: Buying Your First Home
