If this is your personal residence, no, title fees and most of the closing costs are not deductible because you won’t pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won’t pay taxes on the first $500,000, restrictions apply.
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
However, on a new loan, mortgage interest paid (including origination fee or "points"), real estate taxes, private mortgage insurance (subject to limits) are deductible.
If you sold a qualified home, you can make deductions up until the time you sold your home, which includes mortgage interest, mortgage insurance, points and real estate/property taxes. You should be able to see these on the 1098 from your lender.
You can also deduct:
- Home improvement costs (which are more or less permanent changes to the house and not the same as repairs and maintenance and get added to the cost of your home).
-
Mortgage interest and/or real estate/property taxes charged at closing (other than that, almost no closing costs are deductible).
- Moving expenses.
