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    robnola's Avatar
    robnola Posts: 1, Reputation: 1
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    #1

    Oct 18, 2010, 11:40 PM
    Are expenses incurred when trying to buy a house tax-deductible if you didn't get it?
    In 2010, I tried to buy a house - made offer, offer accepted, began full inspections - but the financing fell through and the house was not purchased after all. Are the costs of the inspections tax-deductible if the house wasn't bought in the end? I can't find any info online about the tax issues if there wasn't an actual purchase! Also, might be worth adding - I'm trying to buy a different house now. If those costs are not tax-deductible, can they 'piggyback' on the costs of purchasing an entirely different house? Thank you for any input!
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #2

    Oct 19, 2010, 03:48 AM
    If this isn't a business purchase, the only tax deductions are the interest payments on the loan.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Oct 19, 2010, 11:43 AM
    Agreed
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #4

    Oct 19, 2010, 02:02 PM

    Just to make it clear -- costs associated with buying a house are not deductible, whether the purchase goes through or not (with the exception of interest cost on the mortgage, as noted already). However, purchase costs such as the home inspection fee do count towards the tax cost basis of the house, and hence could help offset any capital gains tax that may be due down the road when you sell the house.
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