OK, I am itemizing this year since i just purchased a home. What i need to know is, what part of my closing costs, if any can i deduct (besides taxes and interest). Also, can i deduct my medical and dental insurance premiums? The IRS books just don't tell much, thanks in advance for any help!!
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if you paid any points at the closing you can deduct them. Be aware that some banks don't report points paid on the year end statements form 1098 they mail to you. If not, then you have to refer back to closing statements to obtain the amount paid. Form 1098 usually summarizes additional taxes paid that are included in your monthly mortgage payments. The bank usually holds these payments in an account called an escrow untill the bill is due. As other people wrote there is a deductible for med & dental expense of the first 7.5% of your gross income. In most cases your med & dental need to be high to be above 7.5% level. For example, if your income was 50,000 you would need expenses over 3,750 to be deductible. If you pay your own insurance premiums thats included as med. exp.
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