Ask Your Tax Question. Tax Experts Answer You ASAP.

(Not a Tax Question?)

Income Tax - Home Refinancing
Sent to Tax Experts February 04 11:18 PM

Under a home refinance, there is an item titled "Loan Origination Fee." That amount is clearly deductible over the life of the loan. Also listed under "New Loan Charges" is an item titled "Broker Origination." The amount is $7988. I assume this fee is also deductible over the life of the loan. Am I correct - or not?

Customer (name blocked for privacy)
Status:  Closed   Value: $25
Answer
February 4 11:25 PM (7 minutes and 20 seconds later)
         
ACCEPTEDCheck Mark

For an origination feeto be deductible, it must be "for the use of money", i.e. equivalent to interest. Without knowing for sure what that fee was for, it isdifficult to say whether or not it qualifies. If it was strictly a broker's fee , it probably does not. If it reduced the interest rate that you would otherwise be paying, it clearly would qualify.

jon@jonacpa.com



Helping individuals and businesses nationwide reduce taxes and increase profits through sound planning and quality service

Jon Andrews -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 2627 Tax Accepts
I deal with all levels of tax planning and controversy - from the ordinary to the complex.
Answer
February 4 11:33 PM (7 minutes and 48 seconds later)
         
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
Christopher Phelps -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 2667 Tax Accepts
CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
Think you can answer this question?
Login or Become an Expert

Related Answers

 

DISCLAIMER: You acknowledge that any information you may obtain from individuals you contact through use of the Just Answer service comes from those individuals, not from Just Answer!, and that Just Answer is not in any way responsible for any of the information these third parties may supply. The site and services are provided "as is" with no warranty and no representations are made regarding the qualification of an Expert. Responses and comments on Just Answer! are for general information and are not intended to substitute for informed professional advice (such as medical, legal, investment or accounting) and do not establish a professional-client relationship. Just Answer! is not intended or designed to address EMERGENCY QUESTIONS which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.

Just Answer! > Income Tax