Get tip on home buying taxes

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Closing Costs

The one-time home purchase costs that are tax deductible as closing costs are real estate taxes charged to you when you closed, mortgage interest paid when you settled, and some loan origination fees (a.k.a. points) applicable to a mortgage of $750,000 or less.

But you’ll only want to itemize them if all your deductions total more than the standard deduction.

Costs of closing on a home that aren’t tax deductible include:

  • Real estate commissions

  • Appraisals

  • Home inspections

  • Attorney fees

  • Title fees

  • Transfer taxes

  • Mortgage refi fees

Mortgage interest and property taxes are annual expenses of owning a home that may or may not be deductible.