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Jason M. Tyra, CPA
Jason M. Tyra, CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 178
Experience:  Principal at Jason M. Tyra, CPA, PLLC
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What, if any, of home purchase closing costs are tax exempt

Customer Question

What, if any, of home purchase closing costs are tax exempt of Federal taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Jason M. Tyra, CPA replied 1 year ago.

Hi Harold:

If you are the buyer, almost all of your closing costs would be capitalized with the associated property and then deducted at the time of sale as part of your adjusted basis. The exception to this would be "points" paid on the note, which may qualify to be deducted at the time of closing under certain circumstances.