Thanks, Carl.
Page 7 and Figure B are about points, not about the VA funding fee. Are they treated identically? And actually, for my 2018 loan, I made a $4000 deposit (no downpayment) and the VA funding fee was $10,857.50, so no, by those rules I would not be able to deduct the whole thing in that year, only part of it, and there would be no avoiding reaching around my elbow to get to my thumb. TurboTax does NOT make it easy to figure out how to enter information in these sorts of hybrid situations.
In 2019 I have to reach around my elbow AND my thumb to get to my big toe, because I refinanced, with points, rolled $13,000 in closing costs into the loan including another VA funding fee, and had major home improvement expenses. And the refinanced loan was sold two weeks after closing. And if I end up having to spread part of my 2018 VA funding fee across two years, then I need to add that into the mix, too.
The only saving grace in all of this is that without question, after 2019 all of my loan indebtedness is home acquisition debt, and I refinanced AGAIN in 2020 with no points and brought enough cash to close that my VA funding fee is covered and there is minimal increase in my loan principal. Oh, and I now have a fabulously low interest rate.
