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From: johnson@saturn.UUCP
Newsgroups: net.taxes
Subject: Re: House purchase deductions
Message-ID: <1927@saturn.UUCP>
Date: Mon, 30-Jan-84 11:36:28 EST
Article-I.D.: saturn.1927
Posted: Mon Jan 30 11:36:28 1984
Date-Received: Thu, 2-Feb-84 01:04:18 EST
Organization: Hewlett Packard Labs, Palo Alto CA
Lines: 14

At the risk of being the n-th person to answer this inquiry, here goes:

Generally, anything on your closing statement marked "interest" or "taxes"
is fully deductible in the year of purchase.  If you're buying the house
as your personal residence (that is, not for investment), you can also
deduct as interest anything marked "loan fees" or "mortgage points".  If some
of the attorney fees are for tax advice (and you have a receipt that says
so), then you can deduct that as a Miscellaneous Deduction on Schedule A.

That's it.  Everything else must be added to the tax basis for the property,
which has the net effect of reducing the amount of capital gains tax you
might have to pay someday, when you sell the house.
-- 
Mark Scott Johnson