Tax Articles
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

What expenses can I deduct from purchasing my first home?

July 16, 2001

Date:  02 Feb 2001
From:  Vincent White

I am a first time homeowner. I incurred expenses to buy the house such as appraisal fee, home inspection fee. Additonally, I received a settlement statement from the escrow company showing additional fees. Am I able to deduct this as a deduction on Schedule A? If so, what line do I use? What about the closing costs that I incurred? Are they tax dedcutible as well? Thanks for your help!!


Date:  09 Feb 2001

Hello Vincent,

Sorry, but the only items that are deductible with respect to your residence are your mortgage interest, any points relating to getting the mortgage (which should be reported on Form 1098 with mortgage interest), and your property taxes.

Most of the other closing costs are added to the tax basis or "cost" of the home.

Be sure to keep your escrow statement as a permanent record of your purchase costs.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

What expenses can I deduct from purchasing my first home?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links

Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter