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Sold and Purchased Home, Are Any Closing Costs Deductible

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  • 04-04-2011, 10:39 PM
    tzr916
    Sold and Purchased Home, Are Any Closing Costs Deductible
    Anything in the closing costs deductible like-
    origination charge
    appraisal fee
    title insurance
    etc
    .
    .
    .


    How do I know if there if there was overlap in County Tax? I've got 1098 from sell/buy. I see county taxes on my HUD settlement for a month and a half when I was between homes... Do I enter this into turbo tax somewhere?
  • 04-06-2011, 10:22 PM
    Mr. Knowitall
    Re: Sold and Purchased Home, Are Any Closing Costs Deductible
    Laws vary by state, and also potentially by whether we're talking an investment property or your home.
  • 04-10-2011, 04:49 AM
    llworking
    Re: Sold and Purchased Home, Are Any Closing Costs Deductible
    Quote:

    Quoting tzr916
    View Post
    Anything in the closing costs deductible like-
    origination charge
    appraisal fee
    title insurance
    etc

    Those costs would not be deductible. They are selling costs that reduce your proceeds from the sale of the home. If this was your primary residence and you are recieving the capital gains exclusion (and your capital gain is less than your exclusion) then that becomes a moot point.

    If its an investment property then when you report the sales proceeds you report them minus the closing costs.


    Quote:

    How do I know if there if there was overlap in County Tax? I've got 1098 from sell/buy. I see county taxes on my HUD settlement for a month and a half when I was between homes... Do I enter this into turbo tax somewhere?
    You will have to review your actual County Tax bills to see if the amount on the HUD statement is in addition to what was reported on your 1098, or included on your 1098. If it is in addition to your 1098 then it would be reported on Schedule A.

    Since TurboTax is question and answer format, I have no idea what mechanism you would use within the software, to make that happen. You might want to consider a tax professional for this year.
  • 04-10-2011, 07:05 PM
    Bubba Jimmy
    Re: Sold and Purchased Home, Are Any Closing Costs Deductible
    Origination fees are deductible as interest paid if they are based on a percentage of your new mortgage amount. Any points reflected on your HUD would be deductible as interest for the home you purchased as well.
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