What closing costs are tax deductible on a primary residence?
We purchased our primary residence this past year (June 2013) via FHA and was wondering what closing costs from the HUD-1, page 2, document are tax deductible. Correct me if I'm mistaken but from what I've researched "Adjusted Origination" charges (line item 803) and Daily Interest Charges (line item 901) are deductible and "Appraisal" fees (line item 804), "Credit Report" fees (line item 805) and "Flood Certification" charges (line item 807) are NOT. The main one I am questioning is line item 902, "Mortgage Insurance premium to US Dept of HUD", under the "Items Required by Lender to Be Paid in Advance" section. I've seen advice to take that amount, divide it by 84 and multiply it by the number of mortgage payments paid during the course of the year. Is that correct or is the total amount paid deductible in this year's taxes since the cost was incurred this year? Thanks.