Florida Real Estate Practice Exam

What can Mariel deduct when buying a home?

1. Closing costs

2. Furnishings purchased on credit

3. Loan origination fee

4. Utility costs

The correct answer is: Loan origination fee

While Mariel may have to pay for all of the options listed when buying a home, only the loan origination fee can be deducted. Closing costs, furnishings purchased on credit, and utility costs are all expenses associated with buying a home, but they are not eligible for a deduction on taxes. On the other hand, the loan origination fee is considered a financing cost and may be eligible for a deduction on taxes. It is important to note that not all financing costs may be deductible, so it is best to consult with a tax professional for specific guidance.