Are closing costs tax deductible?

Answer by  LegalGirl (183)

This is an ambiguous issue and is qualified by a complex legal terminology. What I'm saying is there is no direct answer I can give you. The best I can do, since this is a local municipal issue, is to refer you to an attorney. Contact a local clerical attorney.

Answer by  Att4372 (1704)

Most closing costs are not deductable for the current year, but add to the basis and are deductible against future gains. Points, if specified in closing costs, are deductible.

Answer by  Chaneygirl (1755)

For your personal residence, no. If this is rental or business property, they are added to the cost and depreciated. If investment property, it is added to the basis.

Answer by  Kdm (180)

It depends on the costs. For instance, real estate taxes paid in a given year are deductible for that year. However, a cost like title insurance is added to the basis that you have in your home. This will not generally affect you, except if your home is destroyed.

Answer by  Anonymous

kids karate fee ,preschool fee,chess class tax deductible.