Are Closing Costs Tax Deductible When Selling a House?

When selling your home, it’s likely you’ll focus on the proceeds you’ll earn and the taxes you may need to pay. But there are expenses involved that may be tax deductible. In this post, we explore the question: Are closing costs tax deductible? Let’s take a look at which fees might qualify for tax deductions and which can reduce your capital gains taxes. Reduce Closing Costs With a Cash Offer HomeLight’s Simple Sale platform provides you an all cash offer for your home, helping you avoid both a listing agent’s commission and reduce closing costs. What are examples of seller closing costs? When selling a home, you’ll encounter various closing costs as part of the process. On average, sellers pay between 2% and 5% of a home’s sale price in closing costs. If you count real estate agent commissions (technically not a closing cost), the percentage increases to a range of 6% to 10%. For perspective, the median home price in the U.S. ranges from $410,700 to $429,100, depending on the data source. If you sell your house for a mid-range price of $419,900, you can expect to pay anywhere from $25,194 to $41,990 in seller closing costs. Here’s a breakdown of some common closing costs sellers t...