What portion(s) of my closing costs are tax deductible?

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

  1. Reply
    November 10, 2011 at 11:31 am

    Property tax and interest.


  2. Reply
    November 10, 2011 at 11:39 am

    If you pay points in the refinance, you may write those off…you may also have some real estate taxes credited on the closing statement that would be deductible. Any other costs would simply be added to the cost, or basis, of your home.

  3. Reply
    November 10, 2011 at 12:11 pm

    You can deduct on schedule A, the amounts shown for (1) interest, (2) property tax for the period after you bought the home, (3) points or loan origination fees, (4) mortgage insurance.

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

    Richard K
    Master Tax Advisor
    Enrolled Agent

    This advice is based upon my understanding of the tax law at the time it was written as it applies to the facts provided by you. See my profile for more information.

  4. Reply
    Richard R
    November 10, 2011 at 12:25 pm

    The only portions of the closing costs that are deduct able are the Property taxes you had to pay that were written into the closing costs and any mortgage interest that may have been in there too
    certain closing cost are not depreciated but can be deducted.

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