Are they tax deductable?

 

On a personal residence, only points, prorated taxes and interest. (the interest will be on the 1098 at year end). The taxes could be a credit, not an expense, be careful.

 

The only settlement or closing costs you can deduct are home mortgage interest, points that represent interest (must show proof of a separate lump sum payment) and certain real estate taxes. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.

You may, deduct them in the year you buy your home if you itemize your deductions. Real estate taxes are usually divided so that you and the seller each pay taxes for the part of the property tax year that each owned the home.

Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations.

Make sure you check with a lawyer or someone who is well versed in stuff like this. Good luck