Are Closing Costs Tax Deductible?
3/24/2022
Basically, you’ll want to itemize if you have deductions totaling more than the standard deduction, which for 2022 is $12,950 for single people and $25,900 for married couples filing jointly. Practically every taxpayer gets this deduction, homeowner or not. And most people take it because their actual itemized deductions are less than the standard amount.
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 be able to benefit from 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
