Refinancing closing costs - tax deductible?
I have read both publications 936 and 530 from the IRS on this. I see where closing costs are included in the basis of the home when you buy it but what about when you refinance? Is it deductible then and if so, where does it go on the tax return?
- Anonymous1 decade agoFavorite Answer
It would be reported on the Schedule A. you must Itemize your deductions rather than taking the Standard Deduction in order to claim the qualified expenses on your Tax return
The only things allowed are Mortgage Interest , Points ( on a refinance it has to be split up for the life of the loan) and Real Estate Taxes , all other costs become part of the basisSource(s): Internal Revenue Service 1-800-829-1040
- JudyLv 71 decade ago
Only a few of the closing costs are deductible even on the original purchase - interest, points and real estate taxes. Interest and real estate taxes, if any, are deductible on a refinance too, but points are not.
They would go on schedule A as interest and taxes, and can only be used if you itemize.
- 1 decade ago
any balance of points you had from the original purchase can be fully deductible when you refinance, if you paid points on the refinance, they must be spread out over the life of the refinanced loan
- 1 decade ago
Sorry but the IRS doesn't give you anything for refinancing. The only things you get are your real estate taxes and interest on the mortgage which are reported to you. These you get anyway.
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- federicaLv 44 years ago
maximum last expenses at the instant are not deductible. the only deductible products are pastime, supplies taxes and factors. in case you refinance, back the factors are deductible, yet no longer multi function twelve months. you could desire to unfold them out over the existence of the deepest loan.
- Fool in the RainLv 61 decade ago
Unfortunately, refinancing costs are not tax deductible. Just home mortgage interest you pay for the year.
- Anonymous1 decade ago