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  1. #1
    Join Date
    Aug 2010
    Location
    Northern California
    Posts
    13

    Default 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?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default 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.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,474

    Default 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.


    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.

  4. #4
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default 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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