Check out some similar questions!

wailman · Jan 22, 2006, 01:23 AM

Hello, I am not sure how to claim and what I can claim for settlement charges for my house. I was charged...

300 processing fee
345 application fee
1500 broker fee
65 tax service
50 funding fee
595 underwriting fee
-38.12 interest
595 insurance premium for the year
25 doc prep fee
40 notary fees
708.75 title insurance
200 end fees
20 wire fees
15 overnight fee
103 recording fee
35 closing protection letter
50 certification reimbursmenet
12 flood search fee
4620.63 grand total of fees for settlement

I bought this tax cut program, but it does not allow me or ask me for these things. Where and what documents would these things be accounted for? Are they allowed to be accounted for at all? I looked on the IRS website and it says something about "basis", but I can only find information about basis for seller, nothing about basis for buyer. Not quite sure where to go from here. Anyone have any thoughts?

Settlement was at the end of '05, so I was told that I would be able to claim them, but not sure where...

Thank you for looking, and I look forward to ANY help that anyone would have...

Chris

AtlantaTaxExpert · Jan 22, 2006, 01:34 PM

Chris:

For a personal home, none of these fees are deductible. The $38 in interest is deductible, but that will be included on the Form 1098 you get from the original mortgage broker.

The remaining $4,582 can be added to the basis on your house for tax computations when you sell the house. Unfortunately, this does not reduce your 2005 taxes.

wailman · Jan 23, 2006, 07:37 AM

EXCELLENT!

Thank you for the help. This may explain why I did not find anything. I was told by someone that I could claim some of these costs. I did not quite believe them. Now I see why...

Thanks again!

Chris

AtlantaTaxExpert · Jan 23, 2006, 10:05 AM

Glad to help!

wailman · Jan 23, 2006, 02:39 PM

It says that I will not get any more responses if I do not reply. So I guess I need to reply to get any other responses...