Is the loss mitigation fee I paid when purchasing a short sale home tax deductible?

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.

Best answer:

Answer by Judy
No, but would be part of your basis for the home purchase.

Know better? Leave your own answer in the comments!

diatomaceous earth food grade