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I will be selling my primary home soon at a gain (fortunately). My gain is not taxable (around $20K), as I understand it.

If the buyer asks me to pay points and/or closing costs, are any of these items tax deductible against my income?

Maybe I'm looking at it wrong, but if I decide to pay points or CC for the buyer and they are NOT tax deductible for me, then I'm giving money away as these items will further reduce my untaxed gain.....please help.

Example: Sell house for 150,000. After paying off mortgage of 120,000 and 6,000 to Realtors, my tax free gain is 24,000. BUT, if I pay 4,000 in points and closing, my gain is only 20,000. Can I claim the other 4,000 at tax time as a deduction anywhere? Thx, SG
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