Are refinance costs tax deductible?

Are refinance costs tax deductible? Are mortgage loan costs deductible? When I refinance my home, are closing costs tax deductible? Watch as Attorney Tom Olsen and Dave McCarron answer these questions and more!

Attorney Tom Olsen: Welcome back, everybody. My name is Tom Olsen, and the name of the show is Olsen on Law, every Saturday 11:00 AM right here on News 96.5. My guest today is Dave McCarron. He’s a CPA right here in Orlando. In fact, he’s my CPA and Dave, welcome back to the show again.

Dave McCarron: Thank you, Tom.

Attorney Tom Olsen: Dave, a lot of people are refinancing their home mortgages. When they refinance, are there any tax deductions involved for them?

Dave McCarron: There are some tax deductions that are involved in a home refinance. You know, mortgage rates are still at great lows and refinances are still happening at high numbers. And it’s important to realize that there may be some tax deductions on that refinance if you’re paying origination fees. If you’re paying points on the mortgage to buy down the interest rate. As well as in Florida there is an intangible tax that’s paid on a mortgage refinance and those would be tax deductible as well.

Attorney Tom Olsen: So if you’re refinancing, make sure your CPA probably gets a copy of the settlement statement would be the best way to handle that?

Dave McCarron: Exactly. I’ll tell you, that’s one of those documents you just make sure you keep handy after you refinance.