If you itemize your personal deductions, the portion of closing costs representing real estate taxes may be deductible. And points paid to obtain a mortgage may be deductible in full or have to be spread over the term of the mortgage (depending on certain conditions). But other closing costs, such as attorney’s fees, are not deductible; they are added to the basis of the home, which will reduce reportable gain on a future sale.
A 20% withholding rule applies to nonperiodic distributions, such as lump-sum distributions, paid directly to employees from an employer plan.