google-site-verification: googled2b52e05c6f8f2ec.html Are closing costs tax deductible?

Are closing costs tax deductible?

January 26, 2018

 

 If you have refinanced or taken out a mortgage in the past year you may be eligible to deduct some of your closing costs.  The tax rules will vary depending on the property and occupancy status,  so be sure to let the person who handles your taxes know, if you have bought or sold real estate in the past year.

 

Some common deductions are: 

 

Mortgage insurance premiums — for contracts issued from 2012 to 2017 but paid in the tax year

 

Points — since they’re considered prepaid interest. You must usually allocate points over the life of the loan.

 

Certain real estate taxes paid at closing


Real estate taxes—listed on your real estate tax bill—the lender paid from escrow to the taxing authority


Sales taxes paid at closing

 

If you need a copy of your settlement statement to show your tax advisor,  please do not hesitate to reach out.  orders@closewithsun.com

 

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