Here is a question which is often asked about real estate sales: which home loan fees are deductible for income tax purposes? It is good to know the answer to this question before you sign on the dotted line. It may influence which loan you will choose. Loan fees for certain services are not itemized on your fee statement, but are grouped together into a single category.

The most obvious deductible fee is the loan fee paid to acquire a mortgage for a principal residence. The IRS recently ruled that the buyer could deduct the fee in the first year, even if the seller paid it! Other deductions include pro-rated property taxes and mortgage interest. On these items, the buyer may only deduct their share.

Most of the other closing costs are not deductible, but you may add them to your home's adjusted cost basis when calculating appreciation. Among these costs are appraisal, attorney, and inspection fees, as well as title, recording and notary fees. Fire insurance fees are neither deductible nor do they figure into the cost basis. If you are not sure which fees are deductible, consult a professional tax advisor.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Hildi Baker , CSP, ABR, CRS & Terri Coyle, ABR
Prudential Fox and Roach Realtors
601 E. Baltimore Pike
Media, PA 19063
Hildi Baker's Direct : 610-627-4925
Terri Coyle's Direct: 610-892-5773
Business: 610-566-3000
Fax: 610-566-8664
Email: hildibaker@prufoxroach.com
Email: Terri.Coyle@prufoxroach.com

Hildi Baker is a full-time Realtor with over 25 years experience selling in Delaware County, Chester County and the Main Line. Hildi is a recipient of many Multimillion Dollar Producer Awards as well as multiple Service Awards. She is an accredited Buyer's Representative and has worked with many relocation clients. She has a Bachelors Degree in business and languages and is bilingual in English/German. She came to the US from Europe in 1967. As a US citizen, she has lived in Delaware County for 43 years during which she raised 3 children. For more information on Hildi and her background, please check out the "About Us" tab! Terri Coyle is a lifelong Pennsylvania resident. She grew up in Yardley, Bucks County and is a graduate of Drexel University. Her undergraduate degree in Accounting and MBA in Human Resource Management combined with 17 years experience with a local advertising agency provide the financial, people and marketing skills necessary for the real estate business. Terri has lived and raised children in Delaware and Chester counties for the past 20 years and happily worked in Real Estate for the last five. She is an Accredited Buyer's Respresentative as well as a Relocation Specialist. For more information on Terri, please check out the "About Us" tab. With honesty and integrity Hildi and Terri will employ vast Real Estate knowledge to provide you with excellent customer service in a timely and caring manner that produces exceptional Real Estate results.