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tvorrius
New Member

Dollar Amount of Points Paid (Origination Fees)

Are these exact fees on my 1098?
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PaulaM
Expert Alumni

Dollar Amount of Points Paid (Origination Fees)

Box 6 on Form 1098 for points, but some lenders choose not to report it on the form. If your lender did not report it there, you can find it on your HUD1 statement, along with several other items that may be deductible.

Items on HUD settlement statement that may be deductible:

  • interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). Line 901.
  • real estate taxes charged to you. Line 1004.
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home, - lines 801 and 802, net on 803 on the HUD-1
  • private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization. Line 902/1003.

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

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2 Replies
PaulaM
Expert Alumni

Dollar Amount of Points Paid (Origination Fees)

Box 6 on Form 1098 for points, but some lenders choose not to report it on the form. If your lender did not report it there, you can find it on your HUD1 statement, along with several other items that may be deductible.

Items on HUD settlement statement that may be deductible:

  • interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). Line 901.
  • real estate taxes charged to you. Line 1004.
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home, - lines 801 and 802, net on 803 on the HUD-1
  • private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization. Line 902/1003.

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Dollar Amount of Points Paid (Origination Fees)

Greetings - I noticed the HUD1 has been replaced by the Closing Disclosure form.  Do you have where are the deductible items are on this form?  Thanks so much
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