Are closing costs tax deductible? I recently refinanced and I would like to deduct closing costs for a mortgage refinance but I am not certain this is allowed by the IRS.
You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. You closing costs are not tax deductible if they are fees for services, like title insurance and appraisals.
You can deduct points — since they’re considered prepaid interest. You must usually allocate points over the life of the loan.
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