Are Closing Costs Tax Deductible????
We frequently hear this question as we're working with buyers to find the "perfect place" in Indianapolis. Of course we aren't tax accountants (thank goodness!), and therefore not allowed to provide tax advice. But we can refer our clients to great resources where they can find the answers to these questions.
According to the IRS website, Loan Points and Origination fees are tax deductible, and PMI may also qualify. Visit this IRS website for the details. It is actually amazingly easy to understand and an excellent resource. We also recommend you talk to a tax accountant to see how this applies to your individual circumstances.
Thank you Lenn Harley for reminding us about this in your recent post Is The Origination "Point" Deductible?? Yes the IRS Says So". Of course, we also caution everyone to read the IRS site carefully, because as Lenn so aptly put it "The Devil is in the Details". We couldn't agree more!
Originally posted by Steve and Tonda Hoagland on their Active Rain Blog, www.IndyChats.com