topic Can I claim and therefore deduct a VA (Veterans Affairs) Funding Fee for my rental property that I refinanced? in Investors & landlords

Can I claim and therefore deduct a VA (Veterans Affairs) Funding Fee for my rental property that I refinanced?

bpc98 — Thu, 04 Mar 2021 05:44:36 GMT

Re: Can I claim and therefore deduct a VA (Veterans Affairs) Funding Fee for my rental property t...

MinhT1 — Thu, 04 Mar 2021 15:28:47 GMT

The VA funding fee is considered as a mortgage insurance premium and as such is deductible as mortgage insurance

Please read this IRS document for more information.

Re: Can I claim and therefore deduct a VA (Veterans Affairs) Funding Fee for my rental property that I refinanced?

Carl — Thu, 04 Mar 2021 15:40:42 GMT

What you are calling a funding fee, is mortgage insurance. I've seen it listed two ways on the closing statement, and on the 1098-Mortgage Interest Statement.

On the closing statement it can be shown as PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premium). It's deductible and gets included with (added to) the deductible mortgage interest.

On the 1098 it will be in box 5 of that form.