Is VA funding fee deductible?

[MaryK4]

he VA Funding fee on the purchase of a personal residence is considered a type of mortgage insurance.

To enter your VA funding fee please follow these steps:

1. Click on Federal Taxes > Deductions & Credits  
2. In the Your Home section, click on the Start/Revisit box next to Mortgage Interest, Refinancing, and Insurance. 
3. Enter the VA funding fee in Box 5 - Mortgage insurance premiums.
4. If you've already entered some mortgage information you will see the Mortgage Deduction summary screen.  Click on Edit on the line for the lender.
5. If you need to enter another loan, click on the Add a lender box.

@dan1523

[perryking]

Is the VA Funding fee dedutable for 2020?

  If so is it dedutabel for the full amount paid in one yeaR, OR MUST IT be Amortized  OVER A FIXED PERIOD OR THE LIFE OF THE LOAN ?

[DoninGA]

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@perryking wrote:

Is the VA Funding fee dedutable for 2020?

  If so is it dedutabel for the full amount paid in one yeaR, OR MUST IT be Amortized  OVER A FIXED PERIOD OR THE LIFE OF THE LOAN ?

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If the mortgage insurance contract was issued in 2019, the VA funding fee is fully deductible as Mortgage Insurance on the 2019 Schedule A as an itemized deduction.

[rpbestcpa]

Is the Veteran Funding   Fee Tax Deductible ?

[DoninGA]

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@rpbestcpa wrote:

Is the Veteran Funding   Fee Tax Deductible ?

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The VA Funding Fee is deductible on Schedule A as an itemized deduction entered for Mortgage Insurance.

These fees can be deducted fully in 2020 if the mortgage insurance contract was issued in 2020.