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March 14, 2025
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House closing what under origination fees deductible? attached scrreen shot

  • March 14, 2025
  • 2 replies
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    Best answer by VictoriaD75

    None of the origination charges in your first screenshot are deductible. If the mortgage was for the purchase, the prepaid interest, or points, are deductible in the year paid. If it is for a refinance, they must be capitalized and deducted over the life of the loan.

     

    @amar_r 

    2 replies

    March 14, 2025

    none. and they don't add to your tax basis.

    amar_rAuthor
    March 14, 2025

     

    what about this prepaid mortgage interest in closing statement, original loan sold to another lender and not included in their 1098 form

    VictoriaD75
    March 14, 2025

    None of the origination charges in your first screenshot are deductible. If the mortgage was for the purchase, the prepaid interest, or points, are deductible in the year paid. If it is for a refinance, they must be capitalized and deducted over the life of the loan.

     

    @amar_r 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    March 19, 2025

    what do you think is wrong? I see they don't add to basis and are nondeductible.