Answer:

Generally, deductible closing costs are those for interest (if you itemize your deductions on Schedule A), certain mortgage points, and deductible real estate taxes.

Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including:

  • Abstract fees
  • Charges for installing utility services
  • Legal fees
  • Recording fees
  • Surveys
  • Transfer taxes
  • Title insurance
  • Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions).

Subcategory:

Answer:

No, generally, you can’t claim a deduction for personal mortgage insurance premiums. However, you may be able to claim a deduction for mortgage insurance premiums incurred in carrying on your rental activity, but only to the extent your rental activity constitutes a trade or business or you are otherwise qualified to claim deductions incurred in carrying on your rental activities.

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