Refi home mortgage
2006-10-15 16:22:08 · 4 answers · asked by klmita 3 in Business & Finance ➔ Taxes ➔ United States
Yes, it can be deducted as interest if you itemize.
2006-10-15 20:04:03 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Deduct any mortgage prepayment penalty you paid. Many home loans have prepayment penalties if they are paid off early, usually within the first three to five years. If you paid a prepayment penalty because you sold the home or refinanced, the prepayment penalty qualifies as deductible itemized interest.
2006-10-15 18:22:55 · answer #2 · answered by RamsGod 3 · 1⤊ 0⤋
BTW, if a mortgage company wants to charge you a prepayment penalty if you pay off early, find another mortgage company. Of the seven mortgages I have had zero had prepayment penalties.
2006-10-16 05:00:59 · answer #3 · answered by porkchop 5 · 0⤊ 0⤋
Prepayment penalty fee is not tax deductible. Every type of penalty is not tax deductible. If penalties are deductible, then they will fortfeit the purpose of issuing penalties.
2006-10-15 16:32:14 · answer #4 · answered by Anonymous · 0⤊ 5⤋