Tax FAQ
 

What Part (if Any) Of Closing Costs Are Tax Deductible?

Question by Brian | Posted in United States

The seller is holding my more recent mortgage, is the interest on that mortgage tax deductible? If the seller gave me a "credit" on the loan but did not pay closing costs, can I still out them?

Answer: Interest that you really pay on the second mortgage is deductible. You can't deduct something you were given a credit for - that's really solely a reduction in costs.
 
 

Are Property Taxes Paid Via Escrow Closing Costs Tax Deductible On Federal Tax Return?

Question by BigBanski | Posted in United States


Answer: It is a prosaic misconception that you can write off all real estate taxes you paid when you purchase a cat-house free.

If you buy or sell real estate during the year, the deductible real estate tax is divided by the purchaser and seller according to the number of days each owned the property during the year.

During colony, if they handle it correctly, you will reimburse the seller for RE taxes he already paid for days you will own the well-informed in. In this case,

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What Portion(s) Of My Closing Costs Are Tax Deductible?

Question by Cookie Questions | Posted in United States

For an FHA refinance mortgage advance, what portion(s) of the closing costs can I wrote off??

Answer: You can take from on schedule A, the amounts shown for (1) interest, (2) property tax for the period after you bought the domicile, (3) points or loan origination fees, (4) mortgage indemnification.

All of the other costs would either (1) be added to the cost basis of your home or (2) be non-deductible.

Richard K
Overcome Tax Advisor
Enrolled Agent

This advice is based upon my understanding of the tax law at the time it was written as it

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Are Closing Costs On A Primary Residence Tax Deductible?

Question by laser_kevin | Posted in United States

Recently, I purchased a cull family home from a builder. Are the closing costs that I paid tax deductible? Also, if I refinance this year itself, are these closing costs and/or points tax deductible as well? Any message is greatly appreciated!

Answer: For purchasing a make residence points are deductible, rest of the closing costs aren't (except for any outstanding real mansion taxes that you had to pay as part of the closing costs). For refinancing, the only thing different is that you have to write off the points over the life of the allow. Prepaid interest would be listed on the closing costs but would be included in the end of year statement you receive from the lender indicating how much mortgage interest you paid for the year.

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Refinancing Closing Costs - Tax Deductible?

Question by Michelle | Posted in Other - Taxes

I have conclude from both publications 936 and 530 from the IRS on this. I see where closing costs are included in the basis of the home when you buy it but what about when you refinance? Is it deductible then and if so, where does it go on the tax report?

Answer: It would be reported on the Outline A. you must Itemize your deductions rather than taking the Standard Deduction in order to claim the prepared expenses on your Tax return

The only things allowed are Mortgage Interest , Points ( on a refinance it has to be split up for the moving spirit of the loan) and Real Estate Taxes , all other costs become part of the basis


http://www.irs.gov/publications/p936/ar0 2.html#d0e1320

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Satxcasas.com Home buying process/ $8000 Tax cash back/ No down no closing cost Program

Home ground buying process, what to put on a contract / $8000 Tax cash back/ No dowm no closing cost Program All explained here. Foreclosures shortsales ...

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Source: Man, Was THAT Prediction Wrong. | Mortgages Unzipped

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