The Hughes Team

This article gives information on interest deduction, deducting points, closing costs, and prepayment penalties. It also provides a link to an IRS publication on home mortgage interest deductions. 

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There is no relief or tax deduction for selling your home at a loss.  Another debated issue is the deductibility of  loan fees. You can only deduct the loan fees (points) paid to buy or improve your home in the year of purchase. You cannot deduct these fees if you refinanced only to obtain a lower interest rate. According to the IRS, most points paid when you are refinancing an existing mortgage must be written off over the life of the new loan.

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If you would like to know how the government calculates property taxes, here are some answers to your questions:

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