Are other mortgage purchasing fees deductions?
by Mortgage Rates on Sunday, October 24th, 2010 | 2 Comments
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The credit union will provide the information for you. As for your earnest money it isn’t deductible until it pays for taxes. The origination fee should be deductible.
I didn’t have enough (10960) to itemize either, oh well.
Yes and no. If you paid any pre-paid interest, usually referred to as ‘points’, that money is deductible as mortgage interest.
Application fees, documentation fees, credit check fees, lawyers fees, any fees related to getting the mortgage, are not deductible. Instead, they become part of the cost basis of the property, which is used to determine profit, if any, after a future sale.
Let’s say you paid $100K for the house and $1500 in acquisition expenses that are not tax-deductible interest. Your basis in the property is $101,500.
The only exception would be if the fees were necessary in getting a mortgage related to a job-based move. Then, these expenses may be deductible as moving expenses. Only a qualified tax expert can determine this for you.