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Stockmoose16
Returning Member

Refi closing costs deductions on primary home

Hi,

I did a refi on my primary home mortgage and I'm wondering if anything on my closing statement is deductible? I prepaid property taxes and insurance, and there are a bunch of title and lender fees, as well as a lender credit. Here's a photo of everything.

 

 

closing costs refi.jpg

3 Replies
DMarkM1
Employee Tax Expert

Refi closing costs deductions on primary home

The deductions for your primary home are mortgage interest paid and property (real estate) taxes paid.  You should get a Form 1098 from your mortgage company (one or two if applicable) which will have the amounts paid for each of these items for tax year 2020.  You will enter the information as reported to you on those forms.  

 

If the property taxes are not on the form 1098 for some reason, the amounts you show on the closing statement for "Property Taxes" can be used.  

 

The other costs on your closing statement you keep a record of to use when you sell the property to help reduce any gain on the sale for tax purposes. 

 

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Stockmoose16
Returning Member

Refi closing costs deductions on primary home

If you own your home for 20 years, you're just supposed to remember that you had all these costs? Why wouldn't they be entered into TT now so they aren't forgotten? 

Irene2805
Expert Alumni

Refi closing costs deductions on primary home

Keep a folder (either paper or virtual) of everything having to do with your house.  It should include the settlement statements from the purchase of the home, any refinances, and when you sell the home.  You should also keep track of any improvements (anything that permanently increases the value: remodeling, new roof, new deck).

 

You will need all these to calculate the adjusted basis of the home when you sell it.  

 

For more information see IRS Pub. 530 - Tax Information for Homeowners

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