What exactly on HUD-1 purchase can I deduct when I have seller paying some closing costs and property taxes paid are 5 months initial deposit to escrow account?

[matthewryan80]

I bought a new house in 2013. Line 801 Our Origination Charge $4,045.18. Line 802 is "your credit or charge for the specific interest rate chosen" and is -$3,475.18. Line 803 carries to Paid from Borrower's Funds at Settlement column and is $670.  Line 1004 Property Taxes is $852.60 (city and county) and line 1009 is an Aggregate Adjustment of -$403.98. All of this flows to line 1001 initial Deposit for your Escrow Account of $699.94. The bottom total of "Paid From Borrowers Funds at Settlement" is $4,103.12 which of course flows to page 1 line 103. Then line 208 Seller paid closing Costs of $3,750.20. Knowing this, is there any portion of the Origination fee or property taxes I can deduct on my taxes?

[MargaretL1 · Accepted solution]

Hello,

Congratulations on the purchase of your house!

I am assuming that your new house will be used for personal purposes and not as a rental property...

The following can be deducted by the buyer:

1. Line 801- 803, Loan origination fee - it is deductible by buyer even if paid by seller. If you have the NEW HUD-1 form, and there's an amount on line 803, then you will not include the amounts on line 801 and 802. This is because line 803 is the sum of line 801 minus line 802.

2.  Real estate taxes listed on lines 100-600: (county, city/town) are deductible beginning on the date of sale.  Line 1004 taxes reflects the amounts collected in escrow by lender; the taxes will be deductible when paid from escrow.

3. Line 901 - interest;

Other expenses, such as title fees, real estate commissions, documentary stamps, credit report costs, costs of an abstract, transfer taxes, home inspection, flood certificate, attorney fees, etc. are not deductible, but are added to the cost of the property.

Good luck!

I hope you have found this information helpful.

[samsonpt5]

Does this also apply for refinance of primary resident? Would the amount in line 803 be tax deductable?

[gingergirly5]

where can I deduct Item 901 Interest on turbo tax?

[rleamer1]

did you get a reply? I have the same question....

[vportomene]

I added that amount to the SECOND amount that you fill in on Turbotax (NOT the Form 1098). Be sure to click the box that says you made improvements to your home.

[jstoneinc]

Can someone walk me through where to enter this on turbo tax? Do I add it up and enter it as points?!? Please help