Michigan, US, what part, if any, of fees charged by lender to refinance can be itemized or considered points on schedule A?
2007-02-22 17:04:19 · 6 answers · asked by helenlane_kia 2 in Business & Finance ➔ Taxes ➔ United States
Loan origination fees on a refinanced mortgaged can be deducted over the life of the mortgage. If you have a 15-year mortgage, you can deduct 1/15 of the fees each year as points.
In the year you pay off this mortgage, you can deduct the remaining origination fees.
2007-02-22 21:34:37 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
Any fee specifically identified as "points" may be deducted. Any other fees must be added to the basis of the property and will reduce the gain on the sale of the property when you sell.
On a refinance, the deduction for points paid must be amortized over the life of the loan. If your re-fi was a 15 year loan, you may deduct 1/15 of the points each year. Any undeducted points remaining when the loan is retired (another re-fi or sale) may be deducted in the year the loan is retired.
2007-02-22 23:14:04 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
No, only buy down points spent to get a lower interest rate. Loan origination points and fees are not deductible but can be added to that basis price of your purchase for determining capital gains taxes when you sell years from now.
2016-05-24 01:17:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The previous answer is correct but there is one other point. If you are paying off a refinance that you had paid points on then whatever is left of the amortized portion is deductible in the year of the new refinance.
2007-02-23 11:57:34 · answer #4 · answered by loandude 4 · 0⤊ 0⤋
Points on a refinance would have to be amortized over the life of the mortgage. You would not deduct them in full on Schedule A.
http://www.irs.gov/taxtopics/tc504.html
2007-02-22 17:11:02 · answer #5 · answered by tma 6 · 1⤊ 1⤋
You can claim it all.
2007-02-22 18:07:48 · answer #6 · answered by Anonymous · 0⤊ 2⤋