Tell us how We're doing! 

Here is a question which is often asked about real estate sales: which home loan fees are deductible for income tax purposes? It is good to know the answer to this question before you sign on the dotted line. It may influence which loan you will choose. Loan fees for certain services are not itemized on your fee statement, but are grouped together into a single category.

The most obvious deductible fee is the loan fee paid to acquire a mortgage for a principal residence. The IRS recently ruled that the buyer could deduct the fee in the first year, even if the seller paid it! Other deductions include pro-rated property taxes and mortgage interest. On these items, the buyer may only deduct their share.

Most of the other closing costs are not deductible, but you may add them to your home's adjusted cost basis when calculating appreciation. Among these costs are appraisal, attorney, and inspection fees, as well as title, recording and notary fees. Fire insurance fees are neither deductible nor do they figure into the cost basis. If you are not sure which fees are deductible, consult a professional tax advisor.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Gina Donnelly
THE DONNELLY GROUP REAL ESTATE SERVICES
1256 W. Chandler Blvd. #19
Chandler, AZ 85224
Phone 1: 480-792-9700
Fax: 480-603-3603
ginadonnelly@NUMBER1EXPERT.com

Gina Donnelly is the Designated Broker for The Donnelly Group Real Estate Services and is one of the East Valley's top selling agents. She has sold dozens of homes in the area and knows the local amenities, schools and services. She is outgoing and energetic and champions her clients by defending and maintaining their best interests while pursuing their most ardent desires. This she does with a personal enthusiasm that comes from a real enjoyment of the real estate business. Her personal style though dynamic and outgoing is based on a foundation of trust. "We're dealing with a big financial and emotional investment," she says, "and I want my clients to have complete assurance regarding my character and abilities." "My experience allows you to focus on your move while I manage your home sale and everything it entails." From initial consultation to closing the deal, Gina represents your best interests. Her plan is for her clients to “ Come home in Style”