Is Loan Origination Fee tax deductible without a 1098? Lender Statement has Points as blank and a separate line item for Loan Origination Fee as a tiny % of loan amt.

neworchid — Sat, 01 Jun 2019 07:12:22 GMT

Bought a house last year (for primary residence) but we did not get a 1098 from the original lender (lender sold the loan a month later to another mortgage co). We paid for "Loan Origination Fees" which amounts to .162% (or .00162) of the loan amount.

The lender's closing statement shows Origination Charges broken down into separate lines as follows:

"% of Loan Amount (Points)" as blank
"Loan Origination Fees" as $xxx ---- (not shown as % itself but when we computed, it's equivalent to .162% (or .00162) of the loan amount)

Escrow Closing Statement shows "Lender Origination Fee" for the same amount (.162% of loan).

We do not have HUD-1 or 1098; we're in CA and we're told the HUD-1 is replaced by Closing Disclosure forms. So our questions are:

Is the Lender Origination Fee tax deductible in this case, even though it is a tiny % of the loan amount?
How do we know whether our situation satisfies the IRS requirement: "The points were computed as a percentage of the principal amount of the mortgage."? Does it have to be explicitly stated as a %?

No, your loan origination fee is not deductible. In orde...

DDollar — Sat, 01 Jun 2019 07:12:24 GMT

No, your loan origination fee is not deductible. In order to be deductible points and loan origination fees must be represented as a percentage of the loan. Based on your description, the fees are not deductible.

topic Is Loan Origination Fee tax deductible without a 1098? Lender Statement has Points as blank and a separate line item for Loan Origination Fee as a tiny % of loan amt. in Deductions & credits

Is Loan Origination Fee tax deductible without a 1098? Lender Statement has Points as blank and a separate line item for Loan Origination Fee as a tiny % of loan amt.

No, your loan origination fee is not deductible. In orde...