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Level 2
February 10, 2022
Solved

I have my HUD on a home I refinanced. It shows points and an origination fee. Are both of these items dedutible or just the points.e U refubadncform

  • February 10, 2022
  • 3 replies
  • 25 views
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    Best answer by TomD8

    The IRS considers mortgage loan origination fees to be points.  Here are their rules on deducting points:

    https://www.irs.gov/taxtopics/tc504

    3 replies

    TomD8Alumni - ChampAnswer
    Alumni - Champ
    February 10, 2022

    The IRS considers mortgage loan origination fees to be points.  Here are their rules on deducting points:

    https://www.irs.gov/taxtopics/tc504

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
    Level 15
    February 10, 2022

    An origination fee is only "points" if it is charged as a percentage of the loan, and not for any other fees or services.  For example, a flat fee of $500 is not "points", or if the bank charged 1% of the loan balance but it was designated as a title search fee or bank attorney fee, that is not points.  

    Level 2
    February 13, 2022

    This is the answer I requested.