Are transfer taxes deductible?

Unfortunately, transfer taxes are not tax deductible. Transfer taxes are fees imposed to legally transfer a real estate title, and they vary by state. Often, the seller will pay the tax; however, the tax is not deductible for either the buyer or the seller. (One exception: while transfer taxes cannot be deducted on the sale of personal property, they can be deducted as a work expense if the property is used as a rental home or a real-estate investment).

Transfer taxes can save you money on tax returns down the line, however. Transfer taxes become part of the cost basis of the property, which is used to calculate the final gain on sale if the property is sold. Raising the cost basis of the home decreases the total gain on sale, which decreases the total taxes you pay on the gain.

 For example: let’s say you bought a house for $250k, and sold the same property for $520k. Your gain on sale is $270k. If you are filing alone, you must pay taxes on any gains over $250k ($500k for married couples filing jointly). This means you would pay taxes on the remaining $20,000. However, if you spent $8,000 in transfer taxes, these are added to the house’s original property value. This brings your taxable gain down to $12,000.

Other costs that can be added to your cost basis include fees such as title insurance, and improvements that increase the property's value, such as building additions, paving driveways, or installing new plumbing. 

Transfer taxes are legal fees that must be paid in order for the home or property to be successfully transferred to another individual. Transfer fees from the sale of a personal home are not tax deductible for either the homebuyer or the seller but there is a workaround that does allow you to deduct the amount of the transfer taxes if you are selling. In that case, the seller may deduct the transfer taxes from any capital gains taxes they are liable from the sale of the home because transfer taxes are added to the properties cost basis. 
An example of this workaround in action would be a seller who purchased a home at $50,000 then turning around and selling it for $75,000. Let us say he pays $2,000 for the transfer taxes and fees. He would then have a property cost basis of $52,000, which would mean that the seller is only liable for $23,000 in capital gains tax.
Another possibility that will allow you to reduce the amount of taxes paid is if you purchased the home as a real estate investment or to turn in to a rental property. If you meet the criteria then you may deduct the transfer taxes as a work expense.
In your specific case, you may not deduct the transfer taxes legally until you sell the house which would be done by way of reducing the capital gains you must pay taxes on if you were to sell the home for more than you paid for it.