Home Buying in Miami>Question Details

Ms.J, Other/Just Looking in Miami, FL

Is closing cost tax deductible?

Asked by Ms.J, Miami, FL Fri Jul 29, 2011

If they are, were they suppose to give me a special type of document to take to my accountant when I am ready to do 2011 Income taxes?
I believe I never received anything....

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Much is said about the great tax benefits of becoming a homeowner. you should know that the interest you pay on your mortgage loan will usually be completely tax deductible. Depending on the size and terms of your loan. Closing costs are made up of a laundry list of various charges. They include things like lenders fees, real estate appraisals costs, private mortgage insurance, homeowners insurance, recording fees, title searches and title insurance, as well as many other possible costs. If you have to pay pro-rated property taxes, these will also be tax deductible. if you have to pre-pay any mortgage interest as part of your closing costs, that interest will be tax deductible. mortgage points! These are deductible. This is a percentage of the loan amount that you pay your lender at closing to basically “buy down” your interest rate. Another exception comes if the property you are buying is a rental or investment property. In this case the transfer taxes that are a part of your closing costs will be deductible. Things like hazard insurance or association dues for rental properties are also tax deductible. Check with your financial advisor for more specifics on the tax benefits related to rental/investment home loans. All this information are provided in the financial closing package and the settlement statement (HUD) you sign at closing. And keep property improvement receipts you may be legible for tax benefits, if related to energy saving.
0 votes Thank Flag Link Fri Jul 29, 2011
Ms.J.

A portion of your closing costa re tax deductible. Take your closing statement signed when you
purchase the property to your accountant for him/her to evaluate. Also the lender will send you a 1098 for the mortgage interest paid in the prevoius year. Furthermore, also retain your property tax notice that comes around OCT/NOV to also give to your accountant.

Homeownership in Florida is a great thing because of the deductions,depreciation ( investment property )
and tax shelter.

Any questions please call me at 786-269-3247
0 votes Thank Flag Link Fri Jul 29, 2011
Yes, some of it is: Just take you HUD-1 to your Accountant.
0 votes Thank Flag Link Fri Jul 29, 2011
If you did not keep your HUD-1 statement from your closing, you can request a copy from the title/closing company. For those who have not closed on a real estate purchase, yet- keep your paperwork in a safe place.Abstracts should be in a safe or safety deposit box as they can be quite spendy to duplicate.
Property now in MN is more likely to be transferred accompanied by a title insurance policy than updating an abstract.
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Fri Jul 29, 2011
Yes, a portion of your closing costs are deductible. In addition to the HUD-1 you get at closing, you should also get a Tax Form 1098 (probably early next year) from the lender showing what you paid in interest, taxes, points, etc.
0 votes Thank Flag Link Fri Jul 29, 2011
You got a HUD-1 from your agent, this is your document for tax purposes!
0 votes Thank Flag Link Fri Jul 29, 2011
Just take the closing statement to your accountant. He will know how to do it.

Best regards

Yolande Citro
305 705 9105
Web Reference: http://www.yolandecitro.com
0 votes Thank Flag Link Fri Jul 29, 2011
Yes,take the HUD to your accountant
Web Reference: http://hiirealty.org
0 votes Thank Flag Link Fri Jul 29, 2011
Take the HUD 1 form to your accountant and they will get all the information they need from that.
0 votes Thank Flag Link Fri Jul 29, 2011
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