Re: Deducting closing costs on my taxes

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Deducting closing costs on my taxes
Date: Mon, 22 Feb 1999 18:56:47 -0500

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>Please help me, I purchased a house in June 1998, is it possible to deduct
>closing costs on my tax return, do you know what line on the schedule A form,
>I will have to deduct the closing costs if it is possible

Closing costs are NOT deductible in general.  The only closing costs
are deductible are taxes paid at closing (NOT monies paid to prime your
escrow account, but money you pay to the seller to reimburse them for
property tax they paid for the part of the year you'll be in the house)
and interest paid at closing (i.e. mortgage points [though I don't believe
points designated as "origination fees" are deductible] and any interest
you paid at closing because you didn't close on the last day of the
month).  That's basically it.  The other costs become part of the basis
of your house.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.2

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