If you bought or sold a home last year, immediately after closing you should have received a copy of the CLOSING STATEMENT that contains all the official charges and credits of your home purchase.
The CLOSING STATEMENT is a breakdown of the expenses home sellers and home buyers incur in the real estate sale.
Visit your CPA to confirm this information, but here are a few cost items that may be considered tax deductible:
- Property Taxes
- Prepaid interest
- Private mortgage insurance costs
- Prepaid Mortgage Interest
- Points
Here are a few costs items that may NOT be considered tax deductible:
- Owner’s title insurance
- Title & escrow fees
- Commissions
- Appraisal costs
- Home inspections
- Credit report costs
- Transfer taxes
- Flood Certificate
- Recording Fees
- Attorney Fees
- and more!
With tax codes changing every year it is hard for anyone but a tax professional to keep up. If you need a referral to a tax advisor / CPA please let us know.
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