Question by Joe: Is the loss mitigation fee I paid when purchasing a short sale home tax deductible?
I purchased a short sale home in July 2009. At closing I had to pay a $ 3000 loss mitigation fee because was a short sale. I understand that interest, PMI, and points are tax deductible. Just wondering if the loss mitigation fee was as well. Thanks.
Answer by Judy
No, but would be part of your basis for the home purchase.
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