No, you cannot deduct a loan level price adjustments (LLPA). This fee is not purchasing a lower interest rate which is the reason for loan origination fees or points.
For the HUD1 statement and other deductible fees, here is a helpful list.
-
Seller/Buyer: Amounts shown for your prorated share of property tax for the year of sale - 2016 (deducted on itemized deductions)
-
Buyer: Amounts shown for advance payments to escrow to cover any expense that may be needed before enough mortgage payments can be made such as insurance and/or property taxes (not deductible)
-
Buyer: Points if applicable and mortgage interest (deducted on itemized deductions). Points paid by the seller are deducted by the buyer.
-
Buyer: Occasionally there is a small amount of mortgage interest charged at settlement to cover the period from approval to closing. If you have the same lender in December it may be included on the Form 1098.
- Any other items on the settlement statement will be added as purchase expenses to the purchase price reducing the taxable gain on the sale in the future.
- If the standard deduction is used because it is higher then you would not use these expenses.
Add to purchase price for adjusted basis:
-
The following Items on the settlement statement will be added as purchase expenses to the purchase price reducing the taxable gain on the sale in the future.
-
Title charges, recording fees, transfer tax, other settlement fees
Deduct the allowable expenses in TurboTax Deluxe as follows:
- My Account > Tools > Topic Search > Type itemized deductions > Go
- Continue to
make the proper entries
- Click the
screenshot attached to enlarge and view for assistance.
