got divorced and had to sell house had to pay a prepay penalty
2007-02-02 08:05:41 · 3 answers · asked by danny b 1 in Business & Finance ➔ Taxes ➔ United States
Mortgage prepayment penalty. If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.
2007-02-02 08:09:48 · answer #1 · answered by Barkley Hound 7 · 1⤊ 0⤋
You can't deduct the prepayment penalty, but you could claim it against the sale to reduce any taxable gain from the sale. If none of the gain is taxable because of the exemption, then you get no benefit from the penalty.
2007-02-02 16:16:39 · answer #2 · answered by jseah114 6 · 0⤊ 1⤋
It is all part of your closing costs, isn't it? I think that is the way that ours worked out when we refi'd the house.
If it is part of your closing costs, then you can write it off.
2007-02-02 16:08:47 · answer #3 · answered by Jo 6 · 0⤊ 1⤋