Question

Purchase of home closing costs

Forum|Forum|7 years ago
June 1, 2019
1 reply
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We have deducted interest but is there anything in closing expenses such as broker compensation appraisal fee , transfer taxes etc?

TurboTax Premier Online

L

LeeM

Employee

I have listed out the closing costs that would be deductible and the non-deductible ones below that:

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/transfer taxes charged to you,
points (sometimes called origination fees and expressed as a percentage of the amount borrowed.)? On a refinance they need to be amortized over the life of the loan or 84 months, whichever is less, unless the points were used to improve your main home, and
private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization.

Title fees, real estate commissions, appraisal costs, home inspections, documentary stamps, credit report costs, costs of an abstract, transfer taxes, flood certificate, attorney fees, etc. are not deductible, but are added to the cost of the property (for calculating gain/loss when/if you sell your home).

H

Hollingsworth

In a case where the seller technically paid some portion of closing costs as part of the contract, which, if any, does the buyer of the home get to claim for tax purposes?