Seller paid closing costs-- is this the same as points

[kclark327]

Seller paid $4000 of my closing costs. Is this what I enter for points paid by seller, or do I only count the portion of the closings costs on HUD-1 lines 801 and 802 (loan origination and discount fee)?

[PaulaM · Accepted solution]

Points would be the amount in the 800 section of your settlement papers that represent a percentage of your loan's value. The amount you paid to lower the interest rate of your loan.

Other closing fees are added to your home's basis and not deductible.

Other Items on closing disclosure form that may be deductible:

• Interim interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
• real estate taxes charged to you. 
• points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.
• private mortgage insurance but, if prepaid, only the amount allocable to this year based on an 84 month amortization. 

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf