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Answers (6)
- Clay Branch, "Georgia Loans"
- Contributions:7835
ISO882009, what is the charge on line 803 on the Settlement Statement?
- Clay Branch, "Georgia Loans"
- Contributions:7835
Since you posted on 4/12, I assume you already filed your return. If not, see the IRS link regarding deductions, go to " points" and read all. Be sure to click on the sub links too. There are 2 parts: 1st is do the fees qualify for a deduction, 2nd is can you deduct the whole fee(s) in the 1st year or have to spread out over the term of the loan.
http://www.irs.gov/publications/p936/ar02.html
I wonder how your lender made any money on your loan since the origination charge would include underwriting/admin fees which are typically $750, leaving $545 profit since the "discount points" were used to buy the rate down. What type of loan did you get and what rate/term?
http://www.irs.gov/publications/p936/ar02.html
I wonder how your lender made any money on your loan since the origination charge would include underwriting/admin fees which are typically $750, leaving $545 profit since the "discount points" were used to buy the rate down. What type of loan did you get and what rate/term?
- Scot King, "PacificWestCapital"
- Contributions:45
Hi,
Yes the origination fee is tax deductible as it is the broker's charge which is normally based on a percentage of the loan amount. Points for the rate chosen should be the lender's price for the particular interest rate and are also deductible.
Scot King
Mortgage Broker/CPA
Yes the origination fee is tax deductible as it is the broker's charge which is normally based on a percentage of the loan amount. Points for the rate chosen should be the lender's price for the particular interest rate and are also deductible.
Scot King
Mortgage Broker/CPA
- Clay Branch, "Georgia Loans"
- Contributions:7835
Those are interesting fees. What is the loan amount and what rate/term did you get?
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
Bonified "points", for the purpose of rate reduction, are considered prepaid interest so they are generally tax deductible. The origination charge may not be. I would show it to your tax professional if you have any questions.
~Greg
~Greg
- HomeSand.net, "White Picture"
- Contributions:4392
My tax preparer uses 'Points for the specific interest rate chosen' for my tax return (primary residential).
For tax purposes, do I deduct: "Origination Charge" or Points for the specific interest rate chosen"
"Origination Charge = $1295
"Points for the specific interest rate chosen = $4125.
In my income tax return, it asks for the "Dollar Amount of Points Paid (Origination Fees). What amount do I use???
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