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What items within your closing disclosure form can you deduct; i.e., Prepaid Interest, Property Taxes, PMI? Also, my annual Form 1098 provided by my mortgage company cites the property taxes paid in for the year. Are the property taxes I paid at time of

 
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PaulaM
Expert Alumni

What items within your closing disclosure form can you deduct; i.e., Prepaid Interest, Property Taxes, PMI? Also, my annual Form 1098 provided by my mortgage company cites the property taxes paid in for the year. Are the property taxes I paid at time of

Your entire question above is cutoff. In general, the deductible items that your may deduct on your return are listed below. 

If your 1098 form does not list the entire amount of your property taxes, then you may adjust the amount to properly reflect all monies paid for your property taxes.

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

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PaulaM
Expert Alumni

What items within your closing disclosure form can you deduct; i.e., Prepaid Interest, Property Taxes, PMI? Also, my annual Form 1098 provided by my mortgage company cites the property taxes paid in for the year. Are the property taxes I paid at time of

Your entire question above is cutoff. In general, the deductible items that your may deduct on your return are listed below. 

If your 1098 form does not list the entire amount of your property taxes, then you may adjust the amount to properly reflect all monies paid for your property taxes.

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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