Can I deduct the VA Funding Fee I paid on the purchase of my new Primary Residence in 2018? If so, where/how do I make that entry? Thank you!

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1 Best answer

Expert Alumni

Jun 1, 2019 11:07:56 AM

No, you cannot deduct VA Funding Fees.

From Publication 936 (2018) page 7: Amounts charged by the lender for specific services connected to the loan aren't interest. Examples of these charges are:

Appraisal fees,
Department of Veterans Affairs (VA) funding fees,
Mortgage insurance premiums,
Notary fees, and
Preparation costs for the mortgage note or deed of trust.

You can't deduct these amounts as points either in the year paid or over the life of the mortgage.

Expert Alumni

Jun 1, 2019 11:07:56 AM

No, you cannot deduct VA Funding Fees.

From Publication 936 (2018) page 7: Amounts charged by the lender for specific services connected to the loan aren't interest. Examples of these charges are:

Appraisal fees,
Department of Veterans Affairs (VA) funding fees,
Mortgage insurance premiums,
Notary fees, and
Preparation costs for the mortgage note or deed of trust.

You can't deduct these amounts as points either in the year paid or over the life of the mortgage.

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Can I deduct the VA Funding Fee I paid on the purchase of my new Primary Residence in 2018? If so, where/how do I make that entry? Thank you!