We bought a new home in DE. At closing we were charged for 1. City/County Tax/Stamps ($5,181.90) and 2. State Tax/Stamps ($5,181.90) . Can I claim these?

[ProBowler9]

We bought a new home in DE. At closing we were charged for 1. City/County Tax/Stamps ($5,181.90) and 2. State Tax/Stamps ($5,181.90) as well as Recording Fees ($349.50). The total for the 3 is $10,713.30. Can I claim these? I am getting these numbers directly from my closing statement. No 1099 was provided for these three charges. Do I need one?

I have already filed my return so if I can claim them I would file an amended return. Would that increase my chance of an audit? Even a little?

[KittyM · Accepted solution]

You were correct in not including these transfer taxes in your original return, as they are not deductible.  (They may, however, be added to the original cost of your property when you sell it, thus reducing your potential capital gains tax.)

Generally speaking, filing an amended return does not increase your chances of an audit, since the purpose of an amendment is to correct an error on your original return.  The IRS likes accurate returns, even amended ones.