Hi:

I just refinanced my home and incurred some closing costs. What items
(if any) are deductable? Also, my lender provided a cash incentive to
help cover the fees. Does that wipe out any of deductability?

thanks in advance,

Erik

If you paid points to reduce the interest rate of your loan, you'll
get a deduction for them, but otherwise, you'll only be able to deduct
the interest on the loan as you pay it.

In general, you can't deduct the points you pay all at once, but
instead you have to deduct them spread over the length of the loan. 
Even more annoyingly, you can't deduct a full year's worth this year,
but just a pro-rated amount based on when you did the refinancing: if
you refinanced a 30-year mortgage last month, for example, you would
be able to deduct 3/360ths of the points you paid this year, and
12/360ths next year.  Other refinancing costs besides points are *not*
deductible.  Assuming that the lender's cash incentive was smaller
than the various non-point costs, you should be able to set it against
those costs and still deduct (eventually) the points you paid.

The definitive reference is IRS Pub 936
(http://www.irs.gov/pub/irs-pdf/p936.pdf), but a shorter discussion
can be found at many other places, for instance
http://fofs.com/loanpoints.html.

I hope this answers your question, please ask for a clarification if
not.

thanks,
David

searches used: "deductible points refinance"

Got the answer I was looking for. Good job.