Is my primary home refinance origination fee tax deductible
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In 2018 I refinanced my home loan and took additional 32,000 in that to improve my home.
=========>>>you need to add the cost of capital improvements of $32k to your tax basis in the house.(so you cannot deduct it on sch a of 1040 on your return. )Your tax basis is the amount you'll subtract from the sales price to determine the amount of your profit. A capital improvement is something that adds value to your home, prolongs its life or adapts it to new uses.
I paid about $3900 closing cost (which includes 1,700 origination fees, $740 Appraisal, $335 Tax and other fees and $100+ and others fees).
My question is how what all I can tax deduct from the above listed costs=====>>>in general, when you refinance your primary home or a 2nd home for personal use , you can only deduct points over the life of the loan. I mean You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. To claim the costs, you need to itemize deductions on sch a of 1040.You closing costs are not tax deductible aslongas they are fees for services, like title insurance and appraisals. So,Other typical closing costs on a refinance such as appraisals, underwriter, attorney, or bank fees, title search, etc are not deductible. |