Getting Ready for Your Tax Prep? Don't Forget Your Closing Statement!

If you bought, sold or refinanced a home in 2022, make sure pull to your Closing Statement for tax preparation. It contains all the official charges and credits of your real estate transaction. You will need this statement for filing your personal taxes. Some fees might be tax-deductible and will vary depending on primary, investment or secondary home ownership.

If you can't find your copy, don't worry! Your agent can provide with you a copy BUT they can't provide you with tax information.

Here are a few Closing Cost items that might be considered tax deductible but please consult your tax professional for more details:

• Property Taxes

• Prepaid Interest

• Private Mortgage Insurance

• Prepaid Mortgage Interest

• Points

According to Chicago Title, owner’s title insurance, title and escrow fees, real estate commissions, appraisal costs, home inspections, documentary stamps, credit report costs, costs of an abstract, transfer taxes, flood certificate, recording fees, attorney fees, and any other fees or costs ARE NOT deductible but can be added to the cost of the property. Tax codes are always changing so please make sure to contact your tax advisor to ensure you take advantage of all deductions and credits available to you.