Is title insurance deductible on your federal taxes?


For a primary home, title insurance premiums may not be considered deductible on your federal taxes.

However, in some cases, it may be considered a deductible expense of sale. This means that although the premium payments are not immediately deductible on your federal taxes, when you are about to sell the property, you can include the premiums into you adjusted cost basis. So this can translate to tax deductions for your premiums.

In essence, this means that if you are a seller you can somehow have it deducted, but if you are the buyer, it's not deductible.

The best thing to do to be sure about this, though, is to ask your accountant, as there may be differences in how this is treated from state to state.

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