What is deductible on the HUD-1 Settlement Statement?

Purchased a secondary residence, have a 1098.  HUD-1 information is not on the 1098.  Aside from the origination charges (points), what else is deductible? County taxes? City taxes? Daily interest from settlement date to first payment? Any fees? Transfer charges? Etc.
  • are all 'government recording and transfer charges' deductible?
Real estate taxes, mortgage interest (which would include daily interest charges as well as points), and mortgage insurance premium you pay are tax deductible items on your closing statement.

The prepaid mortgage insurance premium is deducted by allocating it over the shorter of 84
months or the term of the loan unless paid to Department of Veteran Affairs, or Rural Housing Service in which case it can be fully deducted in the year paid.

The following items on your closing statement increase the cost basis of your home but are not deductible.

Attorney fees in connection with obtaining property
State stamp taxes and transfer taxes
Tax service fees
Title policy fees or title insurance
Miscellaneous abstracts of title, surveys, recording of deed
  • Vincent, if I understand you correctly, then the following HUD-1 line items are deductible:
    line 211. County taxes (unpaid by seller)
    line 803. Your adjusted originaltion charges
    line 901. Daily interest charges (date to date @ $/day)

    We have no PMI due to our down payment.

    Is this a correct understanding?
  • Because i am not a HUD 1 analyst, you would need to consult with your lender. However , deductible points and daily interest charges may be included on the 1098 mortgage statements as well as the HUD-1.
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