Are closing costs deductible on your taxes?

Answer by  Chaneygirl (1755)

Closing cost are generally not deductible. There may be a real estate proration which can increase or decrease your real estate deduction. If you paid points or loan origination fees, those are deductible, but should be reported on form 1098, mortgage interest. If this is a rental property, the closing costs are depreciated along with the cost of the home.

Answer by  Kdm (180)

No they are not. Although some of the costs of your home are added to your basis. Mortgage interest and real estate taxes may be deductible based on your other qualified expenses.