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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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What is deductible if I sold my house and bought another h

Customer Question

What is deductible if I sold my house and bought another house?
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thank you for using Just Answer. The only deductible for the sale of your home is the Section 121 exclusion of up to $250,000 ($500,000 for married filing jointly) of the gain from the sale of your personal residence if you owned and used the home as principal residence for at least two out of the five years prior to the sale.
Customer: replied 8 years ago.
I do not meet the exclusion since I didn't live there for 2 years. So can't I deduct the Real Estate commission, closing cost, title insurance, etc... . Can you deduct any of those same fees when you purchase a home, or refinance a home?
Expert:  Marvin,EA replied 8 years ago.
Does your settlement statement identify the amount paid as "points". Points often referred to as "loan origination fees", "maximum loan charges", loan discount".
Customer: replied 8 years ago.
No, it has commission, closing fee, document prep., title insurance, revenue stamps, survey and Real Estate tax
Expert:  Marvin,EA replied 8 years ago.

Are the closing fees, document prep., revenue stamps and survey cost to receive a mortgage on your home?

Customer: replied 8 years ago.

No, the fees are associated with the Settlement Charges for the Title Company and State Revenue Stamps?

Expert:  Marvin,EA replied 8 years ago.

You will not be able to deduct the fees. You must add the fees to the basis price of the home. You can deduct the real estate tax you paid on your Form 1040, Sch. A.

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Customer: replied 8 years ago.
Thank you!
Expert:  Marvin,EA replied 8 years ago.
Thank you for using Just Answer.