Solved: What can we deduct from our closing cost on our home loan? Are we able to deduct any moving costs?
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What can we deduct from our closing cost on our home loan? Are we able to deduct any moving costs?

 
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Level 7

What can we deduct from our closing cost on our home loan? Are we able to deduct any moving costs?

The following home loan expenses are deductible:

·       Daily mortgage interest from the day you closed to the end of the month.  You will see this         on your closing document, but it may not be included on your 1098 mortgage statement.

·       Real estate taxes charged to you

·       Points (sometimes called origination fees and expressed as a percentage of the loan

        ampont

·       Mortgage insurance, if paid

  Non-Deductible closing Costs

·         Attorney fees in connection with obtaining property

·         Real estate commissions

·         State stamp taxes and transfer taxes

·         Tax service fees

·         Title policy fees or title insurance

·         Miscellaneous abstracts of title, surveys, recording of deed

·         Appraisal Costs


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2 Replies
Level 7

What can we deduct from our closing cost on our home loan? Are we able to deduct any moving costs?

The following home loan expenses are deductible:

·       Daily mortgage interest from the day you closed to the end of the month.  You will see this         on your closing document, but it may not be included on your 1098 mortgage statement.

·       Real estate taxes charged to you

·       Points (sometimes called origination fees and expressed as a percentage of the loan

        ampont

·       Mortgage insurance, if paid

  Non-Deductible closing Costs

·         Attorney fees in connection with obtaining property

·         Real estate commissions

·         State stamp taxes and transfer taxes

·         Tax service fees

·         Title policy fees or title insurance

·         Miscellaneous abstracts of title, surveys, recording of deed

·         Appraisal Costs


View solution in original post

Level 7

What can we deduct from our closing cost on our home loan? Are we able to deduct any moving costs?

You may be able to deduct moving expenses if your move was work related and you meet the following the following two tests:

The distance test - Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.

The time test -  If you're an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you're self-employed, you must work full-time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location

See IRS Moving Expense Deductions


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