5 Tax Deductible Closing Cost Items For First Time Home Buyers
Design by Diana Walton- Houston First Time Home Buyer Specialist
Hello and welcome to Houston First Time Home Buyers Edition, where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.
As a Real Estate Broker and first time home buyer specialist, I am often asked, if closing cost can be written off. While there are a few items that can be written off on your taxes, it is best to seek the counsel of a financial or tax advisor regarding your taxes.
Why? Because most closing cost items are not tax deductible. The IRS consider some costs as natural expenses that comes with purchasing a home and therefore cannot be deducted from taxes. So, while most closing costs are not tax deductible, here are 5 that you maybe able to write off, and can be taken in the year they were paid if you qualify.
Mortgage interest paid at closing.
Mortgage points may be deductible, however there are conditions to be met, For example, the amount must be shown on your closing disclosure and the mortgage loan must be used to purchase your primary resident.
Mortgage insurance
Funding fees
Property taxes
To locate your tax-deductible closing cost amounts, you will need to look at your closing disclosure. You will receive a copy of your closing disclosure 2-3 days before closing and again at the closing.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
Image by Diana
