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Is a loan commitment fee tax deductible?

I closed on a second home out of State 12/15/2017.  The closing statement has loan charges, including "Commitment Fee" $495.; Processing Fee $100.; Underwriting Fee $300.

Are any of these tax deductible?

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Level 1

Is a loan commitment fee tax deductible?

The only fees that would be deductible are those that are essentially interest charges, like loan origination fees.  It's possible the Commitment Fee might actually be interest, but to be certain, you should ask the mortgage company if it's a point in interest, or a portion of a point.  Lenders can be masters of inflating their profit with various fees, so it's not always possible to tell.  Processing and underwriting fees are not deductible.

1 Reply
Level 1

Is a loan commitment fee tax deductible?

The only fees that would be deductible are those that are essentially interest charges, like loan origination fees.  It's possible the Commitment Fee might actually be interest, but to be certain, you should ask the mortgage company if it's a point in interest, or a portion of a point.  Lenders can be masters of inflating their profit with various fees, so it's not always possible to tell.  Processing and underwriting fees are not deductible.