Refinancing Your Home – Are the Costs Tax Deductible?

When you refinance your home you may be eligible to deduct some of the costs associated with your loans. 
One of these costs are “points”.  “Points” is used to describe some of the charges you incur to obtain your mortgage.  Taxpayers who itemize may be able to deduct the points paid as mortgage interest.  However, when points paid are only for a refinance then they must be deducted over the life of the loan.  There is an exception to this rule.  If the refinanced mortgage money was used to finance improvements to the home, then they may be fully deductible in the year the points were paid. 

The other closing costs paid when refinancing (i.e. appraisal fees, etc) are not deductible. 

If you are refinancing your home and need help with what is deductible then please contact us for additional help.  www.huddlestontax.com

 

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Seattle CPAAbout Seattle CPA
Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has owned his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

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Huddleston Tax CPAs of Seattle & Bellevue
Certified Public Accountants Focused on Small Business

(800) 376-1785
40 Lake Bellevue Suite 100, Bellevue, WA 98005

Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.