Submitted By: someone
Answered: December 22, 2021 12:04 am

I just bought a home. Can I deduct my closing costs?

If you itemize your personal deductions, the portion of closing costs representing real estate taxes may be deductible. And points paid to obtain a mortgage may be deductible in full or have to be spread over the term of the mortgage (depending on certain conditions). But other closing costs, such as attorney’s fees, are not deductible; they are added to the basis of the home, which will reduce reportable gain on a future sale.

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Tax Glossary

Archer Medical Savings Account (MSA)

A type of medical plan combining high deductible medical insurance protection with an IRA-type savings account fund to pay unreimbursed medical expenses.

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