I'm embarrassed to admit this, but the accountant has a question about accounting. I have spoken to two IRS reps about this and two other accountants and am getting conflicting answers. Are any part of the closing cost used to purchase a home deductible? Appr. fees, title insurance, etc. I tried looking up the IRS publications on their website, but the site is down. Anybody, know? Thanks in advance. Dani
Hey dani As far as I remember, you can deduct your interest, your points, your orgination fee and all prepaid interest you paid at closing. I "think" you can deduct your real estate taxes as well.
Thank you, Mom. I couldn't out why the lady at the IRS kept telling me nothing could be deducted and that I was, basically out of luck. I think she was just having a bad day. The other lady I spoke with told me that points and interest can be deducted and she was real sweet. Go figure. Dani
You are welcome. Also if you use any of the tax softwares, they ask you for all the info, so there is little room for error on what you can and can not deduct.
You can also deduct any "yield spread premium" or broker origination fees. I'm pretty sure you still can't deduct title ins. and the other garbage fees. 99% of the IRS phone people these days are great, no joke. If you get a lousy one, hang up and try back later. I'm not a shill, just someone who has spent A LOT of time talking to the IRS over the last couple of years.
