Being a home buyer, what all closing costs you can deduct from your yearly taxes besides mortgage interest?

Asked by , Wed Mar 12, 2008

Being a home buyer, what all closing costs you can deduct from your yearly taxes besides mortgage interest and property taxes ?

Can you deduct fees such as title insurance, recording fees, attorney fees etc from your taxes ?

Thanks in advance.
-Sash.

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Answers

7
Corey Grushin, Agent, East Brunswick, NJ
Wed Mar 19, 2008
Sach I want to clarify your own answer to your question. Points as defined on the HUD 1 or closing statement that are tax deductable are "discount points", Points on a loan application can also be described as "origination fee", which is NOT tax deductable.
1 vote
Mary, , 08534
Wed Mar 12, 2008
Best advice is to ask your accountant, federal and state taxes are tricky!
Web Reference:  http://www.suedehaven.com
1 vote
Barbara Ostr…, Agent, Closter, NJ
Wed Mar 12, 2008
You can deduct all NJ property taxes, and any points you pay on the mortgage. Otherwise, consult a tax specialist.
1 vote
Ijecktrulia, Home Owner, United Neighbors Together, Rochester, NY
Sat Nov 2, 2013
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0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Sun Mar 16, 2008
All previous answers seem on target. You may want to ask if any of your home is used for business and check this too for home office deductions which I have heard are coming back. My first home was a 2 family of which part was rented. The tax benefits are terrific for this as so much of your expenses and depreciation can be written off.
0 votes
, ,
Thu Mar 13, 2008
Well, Thank you all for your inputs. I did some research on what you can and what you can't deduct off the closing cost from tax savings perspective.

There are only 2 items that can deduct off closing costs.

- Prepaid Mortgage Interest
- State Taxes and any points you've paid upfront at the time of closing, however all other costs like recording fees, title insurance, flood certification, appraisal, title search can be added to the basis of your taxes which would help in estimating your total profit or loss when you plan to sell the house.

Check IRS publication 530 for more details.

Thank you.
0 votes
Deborah Madey, Agent, Brick, NJ
Wed Mar 12, 2008
Hi Sash,

Your question really needs to be directed to a tax pro. Real estate pros love to help....when they can. I haven't seen tax pros come online on Voices and answer questions here. Perhaps someone will chime in with some info, but your best bet is to ask a tax pro.

Deborah
0 votes
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