Can I deduct a late fees accessed on mortgage payments?

[Marketstar · Accepted solution]

Yes, you can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loam

[benseverin]

So where do you enter it on turbo tax?  It was paid as reflected on a closing statement when the mortgage was paid off, but not included on the 1098 form

[Marketstar]

A late fee or prepayment penalty?

[Marketstar]

Special Situations

This section describes certain items that can be included as home mortgage interest and others that can't. It also describes certain special situations that may affect your deduction.

Late payment charge on mortgage payment.

You can deduct as home mortgage interest a late payment charge if it wasn't for a specific service performed in connection with your mortgage loan.

Mortgage prepayment penalty.

If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty isn't for a specific service performed or cost incurred in connection with your mortgage loan.

https://www.irs.gov/publications/p936

[jrdigg1]

Are property Inspection fees connected to late payments tax deductible/ and if so how do I categorize it.

My rental property mortgage was delinquent for several moths and in addition to the late fee I was charged for  a Property inspection.

[DaveF1006]

Yes, property inspection fees can be deductible as a maintenance expense.