Writing off closing costs? (mortgage, mortgage, fee, claim)

[flashburn]

I closed on a house last year where the seller paid all of my closing costs. I was told by a few different people that even though they seller paid for my closing costs, I can still write them off for my taxes this year. Is this true? Does anyone have any links to some credible places that say this is correct? I'd like to make sure before I open myself up for an audit.

[twinmma]

i have never heard of anyone being able to write off any closing costs...my husband is a finanical advisor and he has never heard of that either-regardless of who paid for it.

[haberstroh]

Maybe they mean points to pay down the interest rate that are paid at closing. I am not sure who can claim them though.

[haberstroh]

I guess I should have checked first. Indeed mortgage points (and interest if applic.)are tax deductible. And yes they can be claimed by the buyer and only by the buyer even though the seller might have paid them. Of course there are certain conditions and here is a good and updated link
Home loan points may be deductible (Page 1 of 3)

[TimtheGuy]

You can write off any origination fee and/or discount points EVEN if the seller paid them.

[nitram]

You can only write off what actual money YOU spent on anything. IRS says so. You cannot take credit for someone elses paying.

[mommabear2]

Originally Posted by flashburn

I closed on a house last year where the seller paid all of my closing costs. I was told by a few different people that even though they seller paid for my closing costs, I can still write them off for my taxes this year. Is this true? Does anyone have any links to some credible places that say this is correct? I'd like to make sure before I open myself up for an audit.

I've never heard of a buyer being able to claim closing cost if the seller paid it. The seller will be claiming this on their taxes I assure you... so it can't be done twice???

[flashburn]

Seems like there is a lot of conflicting thoughts about this. Although, the website haberstroh linked above states what I have seen on other sites, which is that regardless who pays the closing costs, it is the buyer that gets to claim it.

[sierraAZ]

Originally Posted by flashburn

I closed on a house last year where the seller paid all of my closing costs. I was told by a few different people that even though they seller paid for my closing costs, I can still write them off for my taxes this year. Is this true? Does anyone have any links to some credible places that say this is correct? I'd like to make sure before I open myself up for an audit.

You can write off the origination fee (usually 1 point) and the discount points if the seller paid any (to buy down the rate). I was quite nicely surprised by this, too.

Tax Topics - Topic 504 Home Mortgage Points

TaxAlmanac - Points Paid by Seller

Homeowner Tax Tips - Quicken Loans

Points, IRS and Tax

Rest assured, there's absolutely no doubt about it.

[haberstroh]

I guess we have to go to our favorite website irs.gov to find the answer. This article explains it pretty well.

Tax Topics - Topic 504 Home Mortgage Points