Solved: We bought a home in Dec I have deducted the taxes, points and insurance.
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steadymj
New Member

We bought a home in Dec I have deducted the taxes, points and insurance.

Do we also deduct closing costs such as Escrow fees, loan delivery , wire and transfer fees; admin fees and processing fees from bank?
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Accepted Solutions
LeeM
New Member

We bought a home in Dec I have deducted the taxes, points and insurance.

The only closing costs that would be deductible are: 
  • 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 (sometimes called origination fees and expressed as a percentage of the amount borrowed.)? On a refinance they need to be amortized over the life of the loan or 84 months, whichever is less, unless the points were used to improve your main home, and 

  • private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization. 

Title fees, real estate commissions, appraisal costs, home inspections, documentary stamps, credit report costs, costs of an abstract, transfer taxes, flood certificate, attorney fees, etc. are not deductible, but are added to the cost of the property. 

For more information, you can review the TurboTax article below:

https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Tax-Breaks-and-Home-Ownership/INF12064...

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1 Reply
LeeM
New Member

We bought a home in Dec I have deducted the taxes, points and insurance.

The only closing costs that would be deductible are: 
  • 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 (sometimes called origination fees and expressed as a percentage of the amount borrowed.)? On a refinance they need to be amortized over the life of the loan or 84 months, whichever is less, unless the points were used to improve your main home, and 

  • private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization. 

Title fees, real estate commissions, appraisal costs, home inspections, documentary stamps, credit report costs, costs of an abstract, transfer taxes, flood certificate, attorney fees, etc. are not deductible, but are added to the cost of the property. 

For more information, you can review the TurboTax article below:

https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Tax-Breaks-and-Home-Ownership/INF12064...

View solution in original post

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