Can you deduct any fees/taxes/interest paid as part refinancing your home?

[Riemann]

Refinanced this year and at closing the woman mentioned the possibility of deducting 3 items from the closing cost fee sheet: partial interest payment (not sure who it was to), Title fees (title company) and some tax paid to the government.

I did not receive any formal tax document desribing these payments, just the sheet at closing. Was the woman full of it? In my internet tax software program, they only say you can deduct these sort of fees if you obained the corresponding government form.

Thoughts?

[A Student]

The partial interest payment is definitely deductible. It was to the previous mortgage holder, and they should include it in their interest form they send to you.

Not sure about the other two.

[Ron Weasley]

Title fee, sounds right, but not sure. Taxes, pretty sure it's deductible. Your tax software of choice will probably walk you through this.

[Wigmeister General]

A $50 investment for a 15-minute consultation with a tax professional to look over your document would be worthwhile. (The $50 fee is tax deductible.)

[Sparktz]

Originally Posted by Wigmeister General

A $50 investment for a 15-minute consultation with a tax professional to look over your document would be worthwhile. (The $50 fee is tax deductible.)

It is technically tax deductible, but in reality you only get to deduct it if you reach 2% of your gross income in miscellaneous deductions in schedule A. Most of the time this isn't reached and the tax preparation deduction is useless.

There are a few other ways to make it useful, but they are for more complicated situations.

[The President]

Only the interest and property taxes are deductible. Other closing costs may be factored in to gains/losses on real estate.