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Level 1

Solved

Temporary Buydown Fee

4 replies
77 views

Seller paid for temporary 2-1 buydown fee to lower our interest payments for the first 2 years. It was listed in Section A of the Closing Disclosure. This amount is deposited in escrow and a fixed amount is applied to interest payment monthly. Is the seller paid buydown fee deductible?

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Vanessa AAnswer

Alumni - Intuit

No. You cannot take a deduction for something someone else paid. So any portion of the interest that is paid with those funds, you would not deduct as an itemized expense if you are itemizing your return.

If you would have been the seller then you could have included it as a selling expense.

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Vanessa AAnswer

Alumni - Intuit

No. You cannot take a deduction for something someone else paid. So any portion of the interest that is paid with those funds, you would not deduct as an itemized expense if you are itemizing your return.

If you would have been the seller then you could have included it as a selling expense.

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

Level 2

Level 2

We added the 2-1 but down to the sales price which i technically paid for so why is this not a tax deduction?