Are late fees on Mortgage Payments tax deductable?

Answer 1

Actually, yes they are deductible... as mortgage interest. The lender usually includes them in the Form 1098 mortgage interest amount.

"Late payment charge on mortgage payment. You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan."

Answer 2

Mortgage Fees Tax Deductible

Answer 3

To really know what the rate is you must look to the APR (the annual percentage rate) By law that figure should be included in the interest rate quote. That will show you your real cost. There are so many ways that people can present a loan to try to make one seem better than another when the truth is they both will end up about the same. There are no fee loans, lower interest rates and so on but the truth there is an expectation to make a certain amount off the loan and that amount will be there no matter how it is presented. The amount they expect to make off the loan can be set by the company then the agent may try to pad the costs to make more. You have a hint of that when you asked for the lower rate and were told that you could buy down the rate. There are certain costs that must be covered by the lender then a certain amount of padding that can be unnecessary. It is like buying a new car that adds fees that are profit only and have no real bearing on the cost/profit a dealer should make according to the factory suggested retail price. For instance dealer preparation... a bogus charge. Scotchguard seats and carpet $300.00. You can buy a can of Scotchguard for 8 or 9 dollars. The point I am trying to make is it seems like that both parties are trying to get your loan by slightly deceptive means. It also seems that the rates quoted might be a little high and padding by both agents. Just when you thought you were halfway there in your loan decision. Don't you think your gut was telling you somrthing when you posted your question here? Do you feel that you are asking for a choice between two questionable loans? If you would like I could give you a free consultation. You will get a rate quote that isn't full of game playing with no charge or obligation.

Answer 4

late charges PAID are absolutely included on a 1098! It does say that it is tax-deductible on the IRS website and I am staring at my 1098 for 2013. After adding up all the monthly interest payments AND the late charges PAID, it adds up exactly to the number shown on the 1098.

Answer 5

Yes you can, per Publication 530 Under Home Mortgage Interest is states that Late payment charge on mortgage payment. You can deduct as home mortgage interest a late payment charge if it was not for a specific service in connection with your mortgage loan.

Publication 530
http://www.irs.gov/publications/p530/index.html

Answer 6

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RE :Are late fees on Mortgage Payments tax deductable?
Follow 10 answers

Answer 7

Late fees are not tax deductible. But any extra interest that you pay is. The late fees are not considered interest.

Answer 8

no.. it is a fee imposed on by the lender for being late it is not interest on your loan and only mortgage interest is tax deductable.

sorry

Answer 9

No.
You're late fee is exactly that - a fee that is charged to you for being late.
I'm not a tax advisor or tax professional, but if you find out how you can make fees deductible, please let us all know. :)

Answer 10

Don't think so