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I refinanced my home and paid closing costs. Are the loan origination fee, appraisal fee, document prep fee, closing fee, and title insurance or any of the other expenses deductible? Are any of the fees I paid to the bank for the loan deductible?

Deductible fees are limited to home mortgage interest and certain real estate taxes. Points that represent interest on a refinancing are generally amortized over the life of the loan. Fees that are not associated with the acquisition of a loan generally (other than fees representing interest for tax purposes) may only have effect on the basis of the home. An example would be a transfer tax that would be charged regardless of whether a loan was involved. Fees related to the acquisition of a loan (other than fees representing interest for tax purposes) generally are not deductible and are not basis adjustments. A credit report fee is a good example. For more information, refer to Publication 936, Home Mortgage Interest Deduction; Tax Topic 504, Home Mortgage Points; and Publication 551, Basis of Assets .

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