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Tax Planning/Tax Basis when refinancing primary or second home


Should closing cost associated with refinancing a primary or secondary home be added to basis?

I understand that points and loan origination fees will be amortized over life of the loan.

What about other cost associated with the loan, including appraisals, assumption fees, flood determination fees, loan processing fees (HUD line 804-811)?  Would these be added to basis?

What about title, recording, settlement charges, would these be added to basis?

William - for the most part, closing costs would be added to basis.  Some of the exceptions would be items that are deductible, such as pro-rated taxes, insurance, etc.  Although, there is an election that you can make to amortize taxes as well.

I hope this helps.

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