Mortgage Tax

add to basis

don't think so gcondo.

i was told that it adds to teh basis of the property by my accountant. i really hope he was right, both times...

Mortgage recording tax is not tax-deductible. It is considered a fee, not a tax.

http://www.irs.gov/pub/irs-pdf/p523.pdf

Page 27: Transfer taxes. You cannot deduct transfer taxes, stamp
taxes, and other incidental taxes and charges on the sale of a home as itemized deductions. ... If you pay these amounts as the buyer, include them in your cost basis of the property.

I would think this sort of "fee" applies here (stamp tax), but not 100% certain.

So add to cost of acquired property to be taken as cost of sale if property is sold. Its just confusing that its called "Mortgage Tax". Both mortgage (interest) and realty taxes are deductible on schedule A for itemizers, but in fact this is a when it is a "transfer tax" or like doc stamps.

anyone out there think otherwise? Love to deduct this for 2009 1040.

thanks all...