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lisa47
New Member

Are loan modification fees tax-deductible?

I modified a mortgage loan - it was a fixed initial term adjustable rate loan, and I modified it when the first adjustment was coming up. Are the fees for the modification tax-deductible like refinancing fees would be?

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1 Reply
Carl
Level 15

Are loan modification fees tax-deductible?

More often than not, loan modification fees are not deductible. So the only response that can be provided to your question is, "it depends". Please read the information at https://www.ottenjohnson.com/news-events-resources/otten-johnson-alerts/2010%20and%20earlier/Tax-Con... to understand the potential complexity of this. Generally, I don't reference non-official web sites. But this website seems to make a pretty descent attempt to explain things in plain English. This website does not answer your question by any means. But it gives you insight to the information needed in order to provide a definitive answer to your question. Like I said above, "it depends."

 

 

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