closing cost deductions

[newVAmom]

What is the name of your state (only U.S. law)? va

I bought a home in 2011 and wanted to get a little clarification on what costs can be deducted on my federal taxes.

I know that the “reserves deposited with lender” can’t be deducted, but can the “items required by lender to be paid in advance” be deducted? i.e. (1) 24 days of daily interest and (2) the mortgage insurance premium.

 

[TinkerBelleLuvr]

http://www.irs.gov/publications/p530/ar02.html#en_US_2010_publink100011834

 

[LdiJ]

What is the name of your state (only U.S. law)? va

I bought a home in 2011 and wanted to get a little clarification on what costs can be deducted on my federal taxes.

I know that the “reserves deposited with lender” can’t be deducted, but can the “items required by lender to be paid in advance” be deducted? i.e. (1) 24 days of daily interest and (2) the mortgage insurance premium.

Anything that you are able to deduct will be reported on the 1098 that you will receive from the mortgage company or companies. The above interest that you mentioned will be included in the total interest you paid on the 1098 and the mortgage insurance premium will also be reported on the 1098.

 

[newVAmom]

when I originally bought the home the lender was "Mortgage Services III". About a month after I bought the home the loan was transferred to Bank of America. The 1098 form that I received is from bank of america so I'm guessing this is why the addition 24 days of interests and the original fees where not included on the 1098 form I received. Should I assume that I will be receiving an addtional 1098 form from "Mortgage Services III" that will include the money paid at closing?

 

[davew128]

No you should call them and ask them.

 

[newVAmom]

thanks for the advise