Are up-front fees and closing costs deductible?
Many of the costs paid at closing are not immediately deductible with the exception of points you pay to purchase your home loan. They are deductible for the year paid. Points paid when you refinance an existing mortgage must be deducted over the life of the new loan. Some fees including loan application, appraisal, document preparation and recording fees that are assessed when purchasing a home can be recouped by adding them to the adjusted cost basis, the starting point for figuring a gain or less when selling the home. Significant home improvements can also be calculated into your cost basis.
