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What can I deduct from HUD-1 forms

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02-06-2009, 01:55 PM	#1
Indiana627 Registered User Join Date: Mar 2008 Posts: 24	What can I deduct from HUD-1 forms? Hello, Last year we moved. Both the house we sold and the house we bought are in New York State. On my HUD-1 form for the house I sold: line 1203 shows I paid $830.00 for "State tax/stamps: Deed" and line 1204 shows I paid $10.00 for "Transfer tax affid." On my HUD-1 form for the house I bought: line 1107 shows I paid $450.00 for "Attorney's Fees," line 1108 shows I paid $761.00 for "Title Insurance," line 1111 shows I paid $400.00 for "Borrower's Attorney's Fee," line 1201 shows I paid $133.00 for "Recording fees: Deed $44 and Mortgage $89," line 1202 shows I paid $937.50 for "City/county tax/stamps: Mortgage," and line 1205 shows I paid $75.00 for "Equalization and Assessement." Can I deduct any of these on either my federal or NYS tax return? Thanks for the help. Mark Last edited by Indiana627 : 02-06-2009 at 08:28 PM.

02-06-2009, 09:17 PM

clydewolf

Registered User

Join Date: Oct 2001

Posts: 1,586

Quote:

Originally Posted by Indiana627

Hello,

Last year we moved. Both the house we sold and the house we bought are in New York State.

On my HUD-1 form for the house I sold:
line 1203 shows I paid $830.00 for "State tax/stamps: Deed" and
line 1204 shows I paid $10.00 for "Transfer tax affid."

These items are not deductable on 1040 Schedule A or IT-201 as itemized deductions.

Quote:

On my HUD-1 form for the house I bought:
line 1107 shows I paid $450.00 for "Attorney's Fees,"

not deductable.

Quote:

line 1108 shows I paid $761.00 for "Title Insurance,"

Title Insurance is Not Deductable. This insurance is in effect for the life of your mortgage and insures against title defects.

PMI insurance is deductable on Schedule A line 13. PMI protects the borrower from the lender failing to make the agreed to mortgage payments.

Quote:

line 1111 shows I paid $400.00 for "Borrower's Attorney's Fee,"
line 1201 shows I paid $133.00 for "Recording fees: Deed $44 and Mortgage $89,"

Not deductable.

Quote:

line 1202 shows I paid $937.50 for "City/county tax/stamps: Mortgage,"

If this is realestate tax, it is deductable on Schedule A line 6.

Quote:

and
line 1205 shows I paid $75.00 for "Equalization and Assessement."

I don't know what this is but it does not look like a realestate tax.

Quote:

Can I deduct any of these on either my federal or NYS tax return?

Thanks for the help.

Mark

If you paid points on your new mortgage, you may be able to deduct those.

For more information on a home mortgage interest deduction, see IRS Pub 936, Home Mortgage Interest Deduction: http://www.irs.gov/pub/irs-pdf/p936.pdf

For non-deductable items can be added to your basis in the home. This may help limit your profit when the home is sold.

Last edited by clydewolf : 02-07-2009 at 03:18 PM.

02-06-2009, 09:55 PM	#3
Indiana627 Registered User Join Date: Mar 2008 Posts: 24	Thanks very much for the help! I did already deduct the points we paid, but I think you found me nearly another $1700 in deductions.

02-07-2009, 02:39 PM

Indiana627

Registered User

Join Date: Mar 2008

Posts: 24

Quote:

Originally Posted by clydewolf

New this year, this deductable on Schedule A line 13.

I was looking at Schedule A line 13 in my tax software program, and it's labeled "Qualified Mortgage Insurance Premiums." Is that the same as "Title Insurance?"

I do not pay any PMI if that matters.

Thanks.

Mark

02-07-2009, 03:14 PM	#5
clydewolf Registered User Join Date: Oct 2001 Posts: 1,586	Indiana627, Good question. It appears I erred on the Title Insurance. I was thinking this is PMI, which Title Insurance is not. PMI protects the lender in a situation where the borrower fails to make payments. Lenders are required to stop PMI when the borrower has a 20% equity in the property. Title insurance is there when there is a defect in the title. Title insurance lasts as long as the mortgage. If you were to refinace sometime in the future, you would need a new title insurance policy. Note that this was written in 2007. Title Insurance Is Not Deductable. Here is much more information on Title Insurance: http://www.mtgprofessor.com/A%20-%2...20Insurance.htm Thanks for raising the question. Last edited by clydewolf : 02-07-2009 at 03:20 PM.

02-08-2009, 11:53 AM	#6
Indiana627 Registered User Join Date: Mar 2008 Posts: 24	No problem. I came to the same conclusion after doing some more research. Thanks again for the help.

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